Business

CBD White Labeling for Entrepreneurs

By Josh Hall

There’s a reason why one of the most popular shows on television involves entrepreneurs pitching ideas and inventions to rich and successful business moguls. Many of us fantasize about putting Corporate America behind us in favor of being our own boss, setting our own hours, and owning our businesses—but few have the guts to actually follow through with it. And that’s probably for the best considering that 80% of startups go down in flames in the first 18 months.

But what if there was a way to insulate yourself from some of that risk? What if, just maybe, you weren’t reinventing the wheel, but focusing solely on the smoothness of its roll? Enter the concept of white labeling, an approach that manufacturers have been using for decades—and also one that savvy cannabidiol (CBD) enthusiasts have identified as a way to capitalize on the CBD craze.

What is white labeling?

Let’s start with the basics. Whether you’re peddling televisions or tinctures (that’s CBD-infused liquid generally taken under the tongue, by the way), the concept of white labeling is the same. The process involves selling or providing a product or service that another company produces—but that is rebranded to appear as though it’s yours. Make sense?

We joked about televisions a second ago, but electronics are a commonly white-labeled product. In fact, it’s not unusual for a manufacturer to assemble televisions, only to slap two different brand badges on them. The same goes for packaged goods like store-brand beverages, ice creams, salad dressings, and beauty products.

How does it work with a CBD white label partner?

That really all depends on your appetite for business and how big you want to build your brand, but the concept is essentially the same. As CBD’s popularity has exploded, and with projections showing no sign of slowed growth, more and more white-labeling partners have been popping up across the web. These are cultivators who have the ability to grow hemp and manufacture CBD products of all different types, from tinctures to vape cartridges, gummies, creams, and more.

As an entrepreneur, you would simply select a partner to provide you the products, and in most cases, you would then handle the marketing and selling of what you received under your own brand. But where it gets interesting is that some providers offer certain packages or expanded services beyond just manufacturing.

For instance, one online CBD white label partner offers three tiers of services for entrepreneurs to choose from based on their comfort level and interests. The lowest level is simply a product with a tamper-proof seal, and you would be responsible for applying your own label and shipping the product. The next tier has the same safety seal, but the partner prints and adds a provided logo to each package before shipping them to you. Finally, the highest level of service does all of the above but also designs a logo for you to use, builds a website, creates labels, and ships the packages on your behalf.

In addition to unique packages, some CBD white label partners provide entrepreneurs with the chance to customize their products. As an example, let’s say your brand includes the word “strawberry” in its name, and you want to tie each of your products into that theme. You may be able to create CBD candies that are strawberry flavored or salves that are strawberry scented if the partner offers that level of customization. Not only does this ensure you can stay on-brand by selecting exactly what you want to sell, but it also provides the chance to invest in a product emotionally that many white label partnerships lack.

Costs with each CBD white label partner fluctuate based on a number of variables, but these partners may expect you to pay an upfront or start-up fee, in addition to a minimum monthly investment in their products.

What are the benefits of partnering to sell CBD white label products?

Well, the most obvious benefit is that anyone can do it from just about anywhere—whether they have a farm in Vermont or a studio apartment in Brooklyn. Don’t have a green thumb or the knowledge, skill, or equipment needed to grow hemp plants and cultivate them into a product fit for human (or pet) consumption? Trust us, most people don’t.

Depending on your arrangement, you may also be able to tap into the expertise of your partner. The CBD industry has become increasingly crowded and having an experienced ally in your corner can never hurt. And perhaps the most fulfilling aspect of partnering to sell CBD white label products is that you get to build and operate a business that you believe in. If you’re at a point where you’re considering entering the CBD white label partnership fray, you’re most likely a CBD user yourself and are well aware of the compound’s abundant benefits.

What are the risks of partnering to sell CBD white label products?

In any white label partnership, the reputation of the entrepreneur’s brand is heavily dependent on the quality of the original manufacturer. Ultimately, it’s a bit of a leap of faith when selecting a partner. If there are quality concerns with a product, customers will look to the brand on the label for answers. Even though you didn’t physically make the product, you’re the one who will have to answer to an irate customer.

There’s also the financial component involved since most CBD white label partners will require a minimum purchase amount. With the number of competitors in the marketplace, the likelihood is high that those products could be hard to move.

Final thoughts on CBD white label products

Regardless of the industry, entrepreneurship is never easy. But there are some ways to lighten the load for a new business owner, and one of the tried-and-true methods is through white labeling. Partnering to sell CBD white label products also affords entrepreneurs with ample opportunities for customization, whether it’s in the tiers of the services offered by their provider or within the make-up of the products themselves.

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