Like any business, a marketing strategy is important for your company’s success. For CBD companies, creating a dynamic marketing strategy is crucial since there are limits to what and where you can market. With all the different marketing obstacles and FDA restrictions, CBD companies need to find other avenues for attracting potential customers. Affiliate and sponsorship marketing can be highly beneficial for your marketing strategy. So what’s the difference between an affiliate and a sponsor? What are the pros and cons of these marketing strategies?
CBD Affiliate Marketing Pros and Cons
Affiliate marketing is a performance-based marketing strategy where your CBD business rewards these affiliates for every customer that’s brought in by that affiliate’s own marketing efforts. The first step of this marketing strategy is researching and identifying viable affiliates that are in-line with your brand and have the right demographic outreach that’s suited to your products. Affiliate marketing can be achieved with individuals with large social media followings, significant blog readers, and really any background that can help introduce your products to the right customers.
- Benefits of CBD Affiliate Marketing: Affiliate marketing is a low-cost marketing strategy where you only pay once leads have actually been converted. With zero to minimal investment, affiliate marketing is a great option for startups and small businesses. Affiliate marketing is easily managed and doesn’t require a lot of experience to implement into your strategy. Affiliate marketing is actually a $1 billion industry making it very lucrative and appealing for viable candidates.
- Disadvantages of CBD Affiliate Marketing: It can be difficult to identify the right affiliates for your program. It is important to take the time to research viable candidates and have an extensive understanding of the demographic that your brand is targeting. Identifying and acquiring the right affiliate can take time and some investment especially if you’re outsourcing this task. There is a lot of competition in the CBD affiliate space, making it important to offer a competitive affiliate program that’s compelling enough to attract the right affiliates.
CBD Sponsorship Marketing Pros and Cons
Sponsorship marketing is a financially-supported marketing strategy where your CBD business finds individuals, companies, or organizations to sponsor your brand. Unlike affiliate marketing that’s a performance-based marketing strategy, sponsorship marketing requires an up-front payment for advertising. Sponsorships can either directly promote your company or products or support a specific event that appeals to your customer base. Some CBD companies have found sports teams, celebrities, companies, and influencers to sponsor their brand.
- Benefits of CBD Sponsorship Marketing: Sponsorship marketing is a great way to introduce your brand and products to mainstream avenues. Sponsorship marketing can really boost brand awareness, helping expose your products to a larger audience. Strategic sponsorship marketing can encourage word-of-mouth marketing as well. Sponsorships also assist in differentiating your brand which is really important for any company in the CBD industry.
- Disadvantages of CBD Sponsorship Marketing: Sponsorship marketing can be a significant investment that might not be ideal for startups and small businesses that don’t have a large marketing budget yet. There still is a lot of misconceptions surrounding CBD which can lead to certain companies and individuals disinterest in your sponsorship opportunity.
Work with the Nation’s Leading CBD Wholesaler for Marketing Advice
Hemp Depot is happy to share all the leading tips on CBD marketing practices. With every white label, wholesale, or bulk CBD purchase, you gain an industry-leading partner with comprehensive CBD marketing resources. We’re happy to share our industry experience and help you build a successful marketing strategy for your company. For more information regarding affiliate or sponsorship marketing for your CBD company, please contact us!