Selling CBD oil is a profitable business and it is proving to be a hot commodity on the market. As of 2019, the CBD oil industry is netting $17 billion annual and by 2025 this figure is expected to increase to $25 billion (or more) per year.
A whole entire industry has sprung up around CBD oil. When this happens to any product or service then you know it is going to be extremely profitable.
American people love money. They also love a hot product. When they figure out how to market, distribute and sell a hot product, then the profits are going to come rolling in. Right now, CBD oil is a hot product and the money that it will generate by 2025 will be astounding.
I want you to continue reading this information. Why? Because it is going to explain to you why CBD oil is profitable. You will learn where the money is at within this industry and quite possibly how to figure out to get some of it for yourself.
Now, let’s discover where CBD oil profits are and how they are being generated through various activities related to this industry.
CBD Oil Profits Start with Uncle Sam
The whole key to the CBD oil industry is the government. The federal and state governments control the livelihood of the CBD oil industry.
Back in the 1990s, CBD oil was considered an illegal narcotic substance by the government and by most states. Federal and state governments just did not see a real purpose for CBD oil at the time. They viewed this substance as nothing more by an alternative drug to be used for getting high.
The federal government still takes this position with CBD oil. They don’t care about the benefits that it may or may not bring to people. They just do not have a real vested interest in making this drug legal.
Why? There are numerous reasons why the federal government doesn’t want to change their stance with CBD oil.
These reasons are outlined below:
- In the 1920s all states decided to make any type of CBD based product illegal. You might not know this but American society (before 1920) depended heavily upon hemp for commercial reasons. Even our former first president George Washington encouraged and promoted the use of hemp.
- The federal and state governments in the early 20th century just did not care about the benefits of CBD or its use for commercial purposes. They just classified it as a drug with other narcotic substances and left the issue alone. The Marihuana Tax Act of 1937 provides more information on this matter.
- The American public at the time followed suit. Keep in mind that people used CBD based substances back then but they were not as popular as they are today. So, for many American people during the 20th century; CBD based products and substances wasn’t an even an issue.
- Drug cartels, drug distributors and local dealers provided an underground or black market for CBD substances but it was not that popular throughout the 20th century. Many people just did not know if it existed. Most of the people that knew about this substance treated it like any other drug and didn’t make a big deal out of it. CBD oil just wasn’t popular during the 1900s.
- The Food and Drug Administration (FDA) also had (and still does have) input into the viability of this substance. During the 1900s, the FDA did not see any valid reasons for anyone to use this substance for medical or recreational purposes. Keep in mind that a small and I do mean a very small number of people used this substance to treat pain and other ailments.
- During the 1900s many doctors would have laughed at any person who was trying to us CBD oil as a medical treatment. Once again, there just wasn’t a need for it. The FDA simply did not view this drug as a valid medical treatment option. They also didn’t see it as a health-improving substance.
- Starting in the 1920s and all the way up until the 1990s, CBD oil was a relatively obscure drug based substance that had very little benefit and recognition. However, this all eventually changed. We’ll get to that in a minute.
- Finally, the government stands to gain more taxes from businesses that sell any type of narcotic substances. There is a federal rule that does not allow any private enterprise to gain a tax break if it is permitted by the states to sell a federally banned substance. In other words, the government would be losing more money by making this substance legal for sale on the federal level.
- Also, the government knows how difficult it is to start changing laws around. This is especially true when it comes to narcotic substances.
- There have been some evidence-based facts that support the use of CBD oil for medical, health or recreational purposes. Without these trials in place that helps to support the need for change, chances are CBD oil will not be released from its current classification under the scheduling system.
- Also, the government must be in control of the drug situation in America. Just pay attention to what is about to be stated. If the government made certain narcotic substances legal for sale and use; and corporations, companies, businesses or individuals started to make huge sums of money from those substances; the government could easily lose control of that narcotic substance. This could also happen if the drug started to be sold by any and every person who felt like making some money from this product.
- One of the biggest problems with allowing a drug to be legalized has to do with control. Society could easily be ruined if a narcotic substance was allowed to be used on a massive scale without checks and balances. Classifying CBD oil as an illegal substance allows the government to keep control. They can simply (and legally) shut down any industry or business if it becomes necessary to take this action.
- The Constitution forbids the United States government from interfering with a private business’s ability to function within the market. However, if the need comes up for the government to stop the hemp industry it will have the legal means and constitutional right to perform this function.
- By the way, President Trump signed a Farm Bill late in 2018. There was a provision for the legalization of hemp. This means that CBD oil is legal for sale by the federal government. Still, don’t be fooled. CBD oil might not be considered a narcotic banned scheduled substance but that doesn’t mean it won’t be illegal at the federal and state levels. Remember, not all states permit this product to be sold legally within its borders.
- However, that still does not mean that CBD products are completely legal. Remember, the government is going to have the illegal status attached to this substance in case there is a need to end this industry. Once again, this will give the government the legal and constitutional means to carry out this function.
All of this might seem like the federal government is being wishy-washy and playing games but they are not. American society up until the 2000s just didn’t care (or know) about CBD oil for medical or recreational purposes.
As a result, our society just didn’t value CBD oil. They simply reacted to it like it was another drug for stoners, losers, and addicts. So, the government must maintain a hardline stance on this issue.
They must see how things will play out with the use of this drug being legally available to the public. If they realize that it is a problem, this industry will quickly fold within a matter of years.
State Governments and CBD Oil
The federal government wasn’t going to change its stance on any narcotic substance for obvious reasons. However, it decided to allow the states to make up their own mind about the issue.
In 1973 Oregon became the first state to eliminate criminal penalties for CBD related drugs. By 1996, the state of California allowed it to be utilized for medical purposes.
By the year 2000, a few more states followed Oregon’s and California’s lead with decriminalizing marijuana and allowing it for medical reasons. By 2010, many states had followed this trend.
When 2015 rolled around most states were allowing people to use CBD oil for medical and recreational purposes. By 2019 (the year this information is being written) at least 47 states allow citizens to use CBD oil for medical, health and recreational purposes. This is all possible because American society has changed a lot since the late 20th century.
People no longer view CBD oil like they did in the past. This in turn has caused a whole new generation of American citizens to be favorable toward this substance. This new generation of citizens produces politicians who have stepped into the political arena.
They are in tune with the new modern American culture. They have the influence and knowledge needed to revolutionize the state’s CBD oil law for a change. In time, they will probably be able to change the federal government’s stance on this issue.
How does all of the above information relate to CBD oil profits?
The bottom line is this. Without government consent at the state level, CBD oil profits would not exist. The state government is what allows a business or individual to legally profit from this substance. Without the state’s approval, CBD oil profits would only be derived on the black market or the underground economy.
State government permission and regulation is the framework in which any company or individual can legally sell CBD oil to the public. Without this framework, CBD oil would simply be another illegal narcotic substance that would put people in jail for using, possessing and selling it.
An Overview of the CBD Oil Industry
The CBD oil Industry produces profits at various stages. This model is the same as any other industry. The CBD oil industry as a whole will be highlighted and then presented in stages along with their potential profit margins. Once again, the amount of money that can be made will vary by venture and by other factors.
The CBD Farming and Profits
At the heart of any product is its resources. Without resources, a product would not exist. Raw materials are used to make everything that people purchase on the market. The same is true for CBD oil.
CBD farmers grow the plants that are converted into CBD oil. The CBD farming business operates in three primary stages. These stages include growing, processing and marketing. Like most other crops, hemp is planted into the grown as seeds. It is then grown.
The growing process is very complex and expensive. Numbers will vary for each CBD grower because their crop sizes are different. Growing CBD is also labor intensive.
Farmers who want to produce a sizable profit must ensure their product doesn’t have any psychoactive effects. They also must make sure that the substance is the same (or nearly the same) as previous batches.
If they are known for selling an effective stain of CBD oil then they must always consistently produce a high-quality crop that can produce this type of product for the market.
Processing is a very complicated procedure and farmers must ensure that their hemp crop is being produced in the same way. This is not as always as it seems. After the crop is grown it is harvested.
Then the harvested plants undergo various extraction methods (chosen by the farmer) to get the oil. Extraction methods CO2 extraction, ethanol or olive oil. Farmers usually grind the flowers and utilize distillation methods to get the oil. There are many different types of processes that farmers use for growing hemp.
Did you know that a lot of farmers grow their hemp plants only in greenhouses? Most hemp producers will only grow female strains of the plant. Truthfully, it would take too much time trying to explain the growing and processing side of the hemp industry. This oversimplified explanation gives you an idea about how hemp oil is made.
The product is then tested for THC content and for quality. After testing is completed it will then be prepared for commercial sale. CBD oil is then checked again for effectiveness and quality.
Once it passes final checks it is ready to be bottled and prepared for the market or sold to another company to be used in their products. Keep in mind that some farmers grow, process and sell the stuff from their own dispensaries or outlets.
Hemp produces CBD oil. When hemp is sold in its raw form it produces around $250 to $350 per acre. Some farmers get around $25 to $35 per pound. Farmers typically produce 600 pounds of hemp per acre.
Each of these figures are averaged amounts. However, some of the farms can produce more while others produce less. Let’s use an average of 600 pounds of hemp x $25 per pound. This will provide a profit of $15,000.
However, once expenses for producing the hemp are taken from the total profits, a hemp farmer will make a profit. In short, the more acres they have the more money they will make.
Hemp is also a cash crop and it is treated like such. Many tobacco farmers have converted to hemp production. As of 2019, they are experiencing a high demand for this green product. However, once the demand for hemp peaks that profit margin will balance out and eventually start to decline.
The average size of an American farm is around 442 acres. This standard will be used to figure out how much money a hemp farmer can expect to make from this venture. Realistically speaking, a farmer with a good hemp growing business can earn millions from their efforts.
This is where the hemp business is at today. Once again, the profits will vary by farm size, experience, and other factors.
However, the money is there and the industry is just starting to grow. Remember, if there wasn’t a real need for hemp from the industrial side, then the infrastructure would not be put in place to support it. CBD oil profits from farming and production will vary but it will yield millions per year.
CBD Oil Based Investments
Investing in companies that produce and sell CBD oil is also a very profitable way to make some money. However, CBD investing comes with a lot of risks. Some of the biggest risks for this type of investing has to do with the legality of this business and the moral dilemma that surrounds it.
Remember that many people feel morally wrong by investing into or dealing with CBD based substances.
Still, a person can invest within this sector of the CBD industry and they are able to receive a good return on their venture.
The CBD oil business is producing excellent profits in 2019. Due to the expected continuous growth of this industry, the CBD oil business profits are projected to rise over the years.
The growth rate is projected at 27% annually until the year 2025. By this time, it is expected that the CBD oil market might start to level off before going into decline.
An investor will have to put their money into backing businesses that work at every level of the CBD oil industries. They can invest in CBD oil securities related to farming or in CBD based businesses that are public companies. Cannabis ETFs and various other hemp stocks are also available.
The amount of money that you can make from this venture will vary by investment. You must take the time to figure out where the best CBD oil investment opportunities are and take it from there.
You should also use a reputable broker who knows the CBD oil industry to help you through this process.
The Profitability of CBD Oil Businesses
CBD oil companies and local businesses stand to make a lot of money selling this product. They typically sell it to consumers who need it for medical reasons. Many people suffering from pain or who simply want to improve their health often purchase this substance.
CBD oil product makers often buy this substance in large quantities and various businesses such as CBD oil restaurants purchases in bulk as well.
CBD oil is the second-best selling product within a hemp selling business. This is because most people purchase hemp flower.
When CBD oil is sold to the public it yields a profit that ranges in the thousands or hundreds of thousands depending on how much business a venture does. By some estimates, at least 40 million people purchase CBD oil. Each of the oils are priced at different amounts.
Many CBD oils are used for vaping pens. A lot of other CBD oils are added to different foods and drinks. I already mentioned that there are restaurants that add this substance to their ingredients.
They do it to help improve a person’s health. By the way, CBD or hemp restaurants are becoming more popular with people. While they are not mainstream, they are slowly turning into profitable eating joints where people can CBD oil added to their favorite dishes and consume it with their favorite drinks.
Right now, these restaurants are very profitable. This part of the CBD oil industry is expected to generate hundreds of millions as these eating establishments start to show up all over the United States in the near future.
The profitability of CBD oil businesses varies. Hempworx is another example of where people can make money. They have an affiliate program where a person can maximize their earning potential by marketing CBD oil.
A CBD oil affiliate program allows a person to market and sell CBD oil to the public. This endeavor can be used as a second income. Selling CBD oil as an affiliate can also start a person down the path toward their own business venture. Hempworx CBD affiliate program is very profitable and a person can make some serious money if they are willing to put in the work to get it.
Remember, this opportunity is only going to give you back what you put into it. So, don’t sell yourself short by not taking advantage of this very lucrative method for marketing CBD oil and making money.
Ultimately, CBD oil is going to make millions in profits. The money is there and you can get some this cash if you have the knowledge for this business, are willing to put in the work, understand the law and can figure out how to sell this product to the people who need it the most.
Some Final Thoughts on CBD Oil Profits
CBD oil is not going away any time soon. The pain epidemic is steadily getting worse for many people.
Doctors don’t fully understand why American society has been experiencing an increased level of pain since the late 90s until the present. However, they figured out that CBD oil is a useful treatment option for people.
It does work for most individuals with alleviating pain. While it has not been approved by the FDA for this purpose, it is still useful enough for people to find pain relief. This fact alone is what makes CBD oil such a valuable commodity.
People don’t like pain. Most people who are suffering from it will be willing to pay lots of money to find relief. No one should spend their life living in pain all of the time. CBD oil doesn’t work for everyone but it does work for enough people who are in need of pain relief. It is not addictive like many opioid-based medications and people don’t overdose from this substance.
The demand for CBD oil is extremely high. People and businesses are lining up for this product. They want to buy it and they are willing to pay good money to get it.
If an individual can position themselves at any level of the CBD oil industry, chances are they are going to walk away with some extra money in their pocket. This substance is a hot commodity that people need and want.
Don’t forget that by the year 2025 the CBD oil is going to generate a staggering amount of money. Billions upon billions of dollars is nothing to sneeze at or joke about.
The market demand for CBD oil is growing stronger and the infrastructure is in place to keep this product around for a long time to come. People can cash in on this opportunity.
Companies and small businesses can benefit from this product and individual sellers can also cash in on it as well. The point is that there is an opportunity for people to make money with this product.
The profits in CBD oil are high, and people should not be quick to overlook them. CBD oil has truly become a great selling product that is going to make a lot of money in the coming years.