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Title: How to Invest in Legalized Marijuana
Source:
smartmoney.com
URL Source: http://www.smartmoney.com/invest/st ... ijuana-1352828147907/?link=SM_
Published: Nov 13, 2012
Author: QUENTIN FOTTRELL
Post Date: 2012-11-13 17:29:51 by F.A. Hayek Fan
Keywords: None
Views: 156
Comments: 16
Mark Twain is said to have remarked that a gold rush is a good time to be in the pick and shovel business. Investors may be able to apply that same bit of wisdom to the growing number of U.S. states that have legalized pot. Although federal law prohibits the sale or possession of marijuana, Massachusetts last week joined the ranks of states -- 18 plus Washington, D.C. -- that allow its use for people suffering from chronic illnesses like cancer, HIV/AIDS, multiple sclerosis and epilepsy. In Washington and Colorado, meanwhile, voters passed an initiative to allow pot for recreational use. Those changes have kickstarted a small but fast-growing medical-marijuana industry, estimated to be worth about $1.7 billion as of 2011, according to See Change Strategy, an independent financial-analysis firm that specializes in new markets. In Colorado alone, sales topped $181 million in 2010, and the business employed 4,200 state-licensed workers, says Aaron Smith, executive director of the National Cannabis Industry Association , a nonprofit trade group that campaigns for marijuana's federal legalization. In addition to profiting itself from growing and selling marijuana, the industry benefits a slew of other businesses, such as insurers, lawyers and agricultural-equipment firms, experts say. "Call it the 'green rush,'" says Derek Peterson, CEO of GrowOp Technology, an online retailer of hydroponics -- products used in the cultivation of indoor plants -- and a subsidiary of OTC stock Terra Tech (TRTC) . "The industry is expanding, and there are all kinds of investment opportunities." For regular investors looking to get in on the action -- and without having to actually grow or sell drugs -- there are several small-cap stocks that stand to gain from marijuana's growing acceptance. Medbox (MDBX), an OTC stock with a $45 million market cap, for example, sells its patented dispensing machines to licensed medical-marijuana dispensaries. The machines, which dispense set doses of the drug, after verifying patients' identities via fingerprint, could potentially be used in ordinary drugstores too, says Medbox founder Vincent Mehdizadeh. Based in Hollywood, Calif., the company already has 130 machines in the field, and it expects to install an additional 40 in the next quarter. "The smart money is trying to help with compliance and transparency," Mehdizadeh says. Of course, investing in drugs the federal government still outlaws poses enormous risks to investors, says Sam Kamin, a law professor and the director of the Constitutional Rights & Remedies Program at the University of Denver. In fact, nearly 500 of the estimated 3,000 dispensaries nationwide have either been closed by the federal government or shut down in the past year, says a spokesman for StickyGuide.com , an online directory and review site for medical marijuana dispensaries -- and yet another ancillary business that's currently seeking investors. That said, there are many companies that appear to be betting on a change in federal law. Steep Hill is a quality-control laboratory that tests medical marijuana to see if there's any contamination from mold, bacteria or harmful pesticides. The company, based in Oakland, Calif., is also actively seeking funding of up to $3 million. David Lampach, co-founder and president of Steep Hill, expects a federal law legalizing medical marijuana within the next decade. Cannabis Science (CBIS) in Colorado Springs, Colo., an OTC stock with a market cap of $41 million, is developing marijuana-based medicines to help cancer and HIV/AIDS patients. "We're at the beginning of the revolution in medicine," says CEO Robert Melamede. Other companies are creating a range of quirky products that allow people to use marijuana without smoking it. Medical Marijuana MJNA -7.98% , an OTC stock with a $69 million market cap, based in San Diego, Calif., offers more than 50 ways to ingest marijuana , from Dixie Elixir soda to Dixie Chill ice-cream and a range of Dixie Edibles, like chocolate truffles and crispy rice treats. While experts say competition in the medical-marijuana business is growing fast, they add that there are also still plenty of opportunities for entrepreneurs. For example, Troy Dayton, president and CEO of ArcView Group , an angel investor network for the industry, says demand has been growing for handheld tobacco vaporizers like those made by Ploom (which charges $250 for its "premium loose-leaf vaporizer"). "There's a rush now to make the ideal vaporizer," Dayton says. "There's still room for a kingmaker in this space." In the meantime, at least one drug company is directly selling medical marijuana to patients around the world. GW Pharmaceuticals (GWPRF), based in London, markets Sativex, billed as the world's first marijuana-based medicine. With a market cap of around $137 million, it's listed on the Alternative Investment Market, a submarket of the London Stock Exchange. Sativex is currently sold as a mouth spray to help alleviate symptoms of multiple sclerosis in several countries, including the U.K., New Zealand, Germany, Spain, Denmark and Canada, a spokesman says, and it is currently seeking FDA approval in the U.S. for use as a pain reliever in late-stage cancer patients.
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If I lived in Colorado I would immediately open a hydroponics superstore and sell grow books, lights, hydroponics equipment, organic dirt, nutrients, etc., etc. Basically everything you need to grow pot. I would create quick do-it-yourself grow kits as well as classes on how to grow hydroponically. I would not use marijuana but instead tomatoes and then explain any differences there are between growing pot and tomatoes. While I would accept credit cards I would strongly advise people to only pay in cash. I would do this for two reasons (1) the obvious reason is so the government cannot compel me to supply them with information on my customers and (2) it would reduce my taxes because as a patriotic American I would not report all of my sales. I'm sure saying this will piss off some of the more left wing members of the forum but they will get over it. Calling Ron Paul an isolationist is like calling your neighbor a hermit because he doesn't come over and break your window - unknown I WITHDRAW MY CONSENT! IF I lived in Colorado I'd be going down to the local dispensary and asking for their best. No medical card needed anymore right. Sweet.
_______________________________________________________________________________ The US government has declared civil war on itself. Its lust for war grew so great... Liberty before death. We run , we live, We fight again, till we win. We did not start this fight. We damn sure did not willingly pay our taxes to buy the bullets and drones that shall be used to kill us. We will correct the violations of this rogue nation....our rogue nation. We will fix this because nobody else can. You will work to help me help us all to fix this failure. After you're done educating yourself,Take Action!!!
You may find this of interest. I wasn't in attendance, but know some of the presenters. 2012 National Marijuana Business Conference – Day 1 Recap A Summary Of The First Day Of The 2012 National Marijuana Business Conference In Denver The first day of the 2012 National Marijuana Business Conference was one of the funnest days I’ve ever had in my life. I knew there would be some big time industry leaders at the event, but my expectations were blown away after barely 30 minutes into the presentations. I’ve been lucky enough to attend a handful of events around the Western United States, but I have never been to an event like the 2012 National Marijuana Business Conference, where the focus is entirely on cannabis business. The Conference was timely – after all, Colorado and Washington State just legalized marijuana, and Massachusetts became America’s 18th medical marijuana state. I think Cassandra Farrington, producer of the National Marijuana Business Conference, put it best. ”There is a tsunami coming,” Farrington told the audience in her opening remarks. “It was building before election night, and now that tsunami wave is about to crash over our heads.” I couldn’t agree more. The cannabis industry is already huge, it’s growing exponentially, and the future looks very, very bright. Chris Walsh from Medical Marijuana Business Daily Chris Walsh from Medical Marijuana Business Daily was the first keynote speaker. He shared information that was gathered from MMJ Business Daily’s annual nationwide survey of medical marijuana patients. I encouraged TWB readers to participate in the survey, and I’ve been anxiously awaiting the release of the information, even if it was just a sneak peak. The data will be fully released as part of the 2013 Marijuana Business Outlook And Factbook, and I encourage everyone to swoop it up when it drops. I know I will! The first panel discussion of the day was ‘Solving the Banking Conundrum’ which is a very, very important issue to all cannabis businesses, even non-dispensary based businesses. The panel was hosted by Lance Ott (CEO Guardian Data Systems), Hilary Bricken (Canna Law Group), and Shawn Coleman (former staffer for Jared Polis). It was interesting to find out that “there is no law stopping banks from doing business with medical marijuana professionals, they’re just risk averse” according to Hilary Bricken. Shawn Coleman offered up this advice for getting banks to change their policies – “make a lot more money.” Lance Ott pointed out that it’s not just banks. Major credit card companies won’t work with medical marijuana businesses either. Mr. Ott stated that the best way to work around the banking conundrum is to “use cashless ATMs and other closed loop systems” and to “never use offshore cash processing.” His last point was stated with quite a bit of emphasis! The second panel was ‘Risky Business’ which was an overview of the unique challenges that the medical marijuana industry faces. The panel was hosted by Christian Sederberg (Vicente Sederberg LLC), Khurshid Khoja (Greenbridge Corporate Counsel), and Chris Lindsey (Montana Cannabis Industry Association). Hearing Christian Sederberg speak about Colorado pre and post Amendment 64 was outstanding, considering he was part of the campaign. My favorite part of his presentation was when he pointed out that marijuana is “coming back to Fort Collins,” after which the crowd erupted with applause. Khurshid Khoja gave an in-depth presentation on the differences between ‘for profit’ and ‘non profit’ dispensary regulations and structures, as well as the benefits and drawbacks of each. I hope his entire presentation is put down in words or recorded someday so that everyone in medical marijuana states can see it. The differences are significant, and I know for a fact that many dispensary owners have no idea what those differences are, which is sad, because knowing those differences could be the difference between success and failure for any dispensary. Quite possibly my favorite (and saddest) part of any of the panels was when Chris Lindsey took the podium. Chris Lindsey helps TWB report about issues in Montana, and is also in the middle of the nastiest medical marijuana case in Montana. Chris Lindsey is part of the same case that involves Chris Williams, which loyal TWB readers know a lot about. Something that was chilling was when Chris Lindsey pointed out that the DEA investigation against him and his partners started the same month that the federal DOJ issued the now infamous memo that claimed the feds would respect state laws. The brutal irony of that is still hard for me to fit my head around, and it’s something that all cannabis business owners should take into consideration. I plan on writing a separate story about Mr. Lindsey’s presentation, as there was just too much in there that I wanted to follow up on. The next keynote speaker was Rob Kampia from the Marijuana Policy Project. His presentation was titled ‘Election 2012: How National State Results Affect Your Business.’ Rob’s summary of the election was fantastic, mainly because his organization was directly funding and assisting the Colorado legalization effort. As Mr. Kampia pointed out, legalization will definitely expand the marijuana industry in Washington State and Colorado, and now that Massachusetts has become a medical marijuana state, there is obviously a lot of incentive to start businesses there. Rob put up a map of the United States during his presentation and talked about what to anticipate in the future. According to his predictions, medical marijuana could be coming to states like New York, Illinois, and Idaho, and legalization could be coming to other states via the legislature. I sure hope so, because initiatives that would achieve the same result aren’t possible in 2013. The only thing that I would ad to his presentation is that Oregon will be the next state to legalize marijuana via the initiative system (Oregon pride? Maybe a little bit!). Troy Dayton of The Arcview Group After a brief lunch break, the panels started up again, in two different rooms. I wanted to watch all the presentations, so I had to get a little crafty and bounce back and forth. A panel that was very popular was ‘How to Find Startup Money and Secure Investments’ hosted by one of my heroes Troy Dayton (Arcview Group) and James Slatic (MedWest). James started out the presentation by asking how many people in the crowd needed investments, and then asked how many people in the crowd were looking to invest. I think this was a good visual for the crowd, as it showed that there are a lot more people looking for investments than people looking to invest. That’s not meant to be discouraging – I say this because it should highlight to people that the market is competitive, so make sure your idea is as refined as possible to ensure the best chance of securing start up funds. As always, Troy Dayton was electric. I will never get tired of hearing the story of why he started ArcView Group. Essentially, he saw people throwing money at the cannabis industry with little to no return, because the investors didn’t understand ‘the nuances of the cannabis culture and industry.’ Troy started ArcView Group to bridge that gap, and help investors link up with good investments, rather than blindly try to get in on the ‘green rush.’ The ‘Potency, Dosage, and Labeling of Edibles’ presentation was hosted by Ralph Morgan of Evergreen Apothecary and Organa Labs. The room was absolutely packed, which is a testament to the exploding popularity of edible marijuana products. If there is one thing that Ralph wanted the crowd to know, it was to ‘learn all you can about local regulations.’ There are regulations specific to medical marijuana, and regulations that are specific to food in general. The FDA does not have guidelines for edible marijuana products, and as a result, local governments have filled the void, and they are rarely the same. Whether the government requires it, or patients just demand it for quality assurance, labeling and dosage recommendations are here to stay, so get out ahead of the regulations as much as possible. I bounced between the ‘Tips for Buying, Selling a MMJ Business’ hosted by KC Stark (MMJ Business Academy) and Charles Houghton (Charles Houghton, P.C.), and ‘Testing: Why it’s Important and How to Find a Credible Lab’ hosted by Genifer Murray (CannaLabs) and Sytze Elzinga (The Werc Shop), both of which were extremely interesting. As someone that was once trying to sell a cannabis business, I know that finding a buyer can be very difficult. The main tips that I took from that panel was to have your idea as refined as possible, and know where to find buyers. Finding a buyer in Denver or Los Angeles is going to be much easier than finding a buyer from Idaho, simply because the industry is established, and investors have been there for several years now. To be honest, the testing panel was a bit over my head due to the large amount of chemistry involved, but if there’s one thing that the hosts wanted the crowd to take away from the presentation was that testing is EXTREMELY important, and that not all testers are created equal. Patients are already suffering, and smoking foreign items such as mold and mildew can be very harmful to the patient. Testing is becoming a requirement in more and more medical marijuana states, so it is recommended to start doing it even if it is not required in order to be ahead of the curve and provide the best product to your patients. A panel on taxes, hosted by Henry Wykowski, Jim Marty, and Greta Carter was going on the at the same time a ‘Infused Product Makers’ presentation was going on, which was hosted by Tripp Keber of Dixie Elixers. Henry Wykowski stated that “taxes are the most important issue facing medical marijuana dispensaries today.” All levels of law enforcement are in on the action, and the feds are “just a pig at the trough” as Mr. Wykowski explained. Steve DeAngelo once explained to me that it’s harder to get people fired up about taxes than it is to get them fired up about recent raids because taxes are boring to most Americans. When cops kick in a door, people want to cry foul. But when someone gets audited, way less people realize what’s going on. In the infused product presentation, a lot of the labeling, potency, and dosage information was overlapping, but the market projections for infused products was a lot higher than I had expected. One thing that I took from the presentation was Tripp’s statement – “This is a once in a lifetime opportunity. You don’t want to be a grandparent explaining to your grand kids that you missed out on the greatest opportunity in your lifetime because you decided to sit on the fence. The time is now.” The final panels of the day were ‘Insurance Options’ hosted by Doug Banfelder, and ‘New Opportunities for Ancillary MMJ Businesses’ hosted by Khurshid Khoja. Getting insurance on your medical marijuana business is something that a lot of owners don’t always think about, and when they do, they don’t think about every factor that should go into deciding what coverage to do. Mr. Banfelder pointed out that if a business has a drive thru in their parking lot, that will take extra insurance. He also pointed out that if you are doing deliveries, to make sure to get cargo coverage. The more prepared a person is, the lower their insurance rates will be. If there was one thing that the speaker wanted the crowd to take away from the discussion it’s to call your insurance agent before calling your accountant when filing a claim. It will save a lot of headache! The ancillary business presentation was something I was looking forward to all day, since as Troy Dayton stated earlier in the day, “they are more likely to get investors than dispensaries due to less risk involved.” Mr. Khoja discussed various sectors of the marijuana industry that are thriving, and are completely legal, such as security systems, growing equipment, consultants, lawyers, etc. The room was packed and by the end of the question and answer session, I think there were people in the crowd that were originally looking to open a safe access point, but instead might be looking into other areas. Something that wasn’t covered was media, but I’ll make sure to recommend that for the next event! I plan on expanding on this article as I get more time – the event was jam packed with so many informational opportunities that I’m still trying to fit my head around all of it! Considering how awesome day 1 was, I can only imagine what’s in store for day 2. I will say this over and over again – if you want to get involved in the marijuana industry as an investor, or have a marijuana idea that you need an investor for, THERE IS NO BETTER PLACE TO FIND INFORMATION AND NETWORK WITH PEOPLE THAN THIS EVENT. If you attended the event, you know exactly what I’m talking about. If you didn’t attend the event, and are now feeling kind of lame, don’t worry, they are having another one next year! Stay tuned for my day 2 summary! 2012 National Marijuana Business Conference – Day 2 Recap The 2012 National Marijuana Business Conference Was The Best Place To Learn How To Invest And Profit In The Booming Marijuana Industry The second day of the 2012 National Marijuana Business Conference in Denver, Colorado was even better than the first, if that is even possible. The morning started off with back-to-back keynote speakers. The first was Aaron Smith, Executive Director of the National Cannabis Industry Association. Mr. Smith’s presentation was title, ’2013 Legislation: How to Impact the Future – Your Next Steps.’ Aaron started his speech with summaries of the historic 2012 Election results, to which the crowd reacted in applause several times. I had to pinch myself to remind myself I was indeed awake and living in a country where marijuana prohibition has ended in two states. Something that I found very interesting from Aaron Smith’s speech was that Denver tax revenues from the medical marijuana industry were enough to cover 98% of the municipal parks system, which is the largest in the United States. Imagine if each city took the same approach as Denver. How much money would be generated to help shrinking government budgets at the local level? That’s something I think every politician and agency head could get on board with! A theme that Aaron Smith hammered home to the people in attendance was the need to unite and keep fighting for reform. “One business is one business.” Aaron Smith said. “Working together, we have a high potential to change the game forever.” The next keynote speaker was Steve DeAngelo, Executive Director of Harborside Health Center. If you don’t know who Steve DeAngelo is then chances are….seriously, does anyone not know who Steve DeAngelo is by now?! Everyone in the crowd certainly did, because the roof almost blew off the place when he was announced. Steve’s presentation was titled, ‘Threading the Needle: Reaching Success Through Volatile Times.’ If anyone knows what to say on that subject, it would absolutely be Mr. DeAngelo, who’s ongoing battle with the federal government has been highly publicized all over the media. After giving some words of encouragement and talking about the new momentum for cannabis after the historic election, Steve DeAngelo began to discuss the fact that states with medical marijuana experience are going to be more likely to look at legalization positively. Steve told the crowd to “use this as a path to expanding the market.” Something that Mr. DeAngelo said that I really liked was, “The best way to survive business volatility is to know if you’re up for risks. Connect to the movement; not just the industry.” That’s something that I think a lot of business minded people in the movement don’t always understand – marijuana business and marijuana activism go hand in hand. Steve DeAngelo offered up three tips to survive the often turbulent waters of the marijuana industry. The first was to develop end user products with multiple sales channels. That way if your dispensary gets shut down, you have a Plan B in place. The second tip is to focus on your public image. Community image is key – engage your local community. Help the community understand that this is about wellness, not intoxication. Steve’s third point builds off of the second point – A focus on wellness is not just smart politically, it’s also good for business. Steve DeAngelo stated that, “the wellness market is much larger than the intoxication market.” After a brief break, a panel titled ‘When the Feds Come Knocking: Handling Raids, Civil Forfeitures And Other Attacks’ began, hosted by panelists Eapen Thampy (Americans for Forfeiture Reform), Robert J. Corry Jr. (Corry & Associates), and Henry Wykowski (Henry G. Wykowski & Associates). Asset forfeiture reform is something that I don’t think gets nearly enough attention from the movement. At the end of the day, that’s what it’s all about from a law enforcement standpoint. Marijuana businesses make a lot of money, and if the cops bust them, they get a huge, huge chunk of what they take. Eapen Thampy pointed out that ‘forfeiture has become a preferred method of federal prosecution for medical marijuana businesses.’ Rob Corry has been a hero of mine for a couple of years now, and I was disappointed that I didn’t get a chance to talk to him at the convention. Hopefully he is back next year! Mr. Corry pointed out that the forfeiture reform panel discussed and felt that the second Obama administration will not take action against Amendment 64. There has been some huffing and puffing in the media about it, but at the end of the day, I really hope the Obama Administration respects the democratic process in both Colorado and Washington State. Rob went on to encourage the crowd to ‘push for state directives banning local law enforcement from cooperating with the DEA on marijuana raids, like ‘safe harbor’ policies for immigration. That is such a good idea, that I am going to start pushing for something like that in Oregon as soon as I can, even before we pass legalization. I saw Henry Wykowski speak on another panel during day 1 of the conference, so I was excited to see him talk again. He offered up this advice to help with the possible nightmare that is a raid on your marijuana business – keep your cool, train employees to not say ANYTHING, keep encrypted files backed up offsite, ask who’s in charge, to see a warrant, ask what agencies are involved, ask to video the raid, and to ALWAYS call your lawyer. The next presentation was by Brian Vicente (Vicente Sederberg, LLC) and KC Stark (MMJ Business Academy), titled, ‘State Marijuana Legalization: How Could it Affect Your Business.’ This presentation was something I was really looking forward to, considering the fact that Brian Vicente was a Co-Director for the Amendment 64 campaign. He spoke from the political and industry side of things, which I’m not sure too many other people on the planet can say right now. Brian knows the Amendment 64 law inside and out considering he co-wrote it, and he pointed out some things that are important to keep in mind. 1) Businesses in Colorado are relying on the Governor and legislature to implement Amendment 64 in an orderly fashion, but there are no exact timetables at the moment. 2) All medical marijuana laws in Colorado remain in full force and effect. Dispensaries cannot just sell to anyone. 3) The excise tax in the Colorado law will not apply to registered patients, only to the general public. 4) In Colorado, communities can decide to allow retail marijuana shops, much like wet/dry do with alcohol. 5) Home cultivation is allowed. Brian Vicente said something about point number five that I thought was clever – “People can grow at home, like people can brew beer. But how many people actually brew beer vs buying a 6-pk?” After the lunch break, there were a total of 8 panels that I skipped back and forth between. There were as follows: Angel Stanz and Tripp Keber presenting at the 2012 National Marijuana Business Conference Whether it’s concentrates, flower, medibles, and beyond, the world of marijuana consumption is expanding rapidly. Long gone are the days when you had to choose between using an apple or a rolling paper. If there was one thing that I took from this presentation, it was that non-intoxicating cannabis wellness products will be huge mainstream offerings. As science continues to unlock the healing powers of cannabis, more and more products will be sold to people that don’t want to necessarily get high – they just want relief. Although I’m not one of those people myself, I know a lot of people that would consume cannabis products if it didn’t impair them. East Coast Opportunities: How to Capitalize in the Northeast and Mid-Atlantic – Richard Evans (EvensCutler Attorneys), Jason Klein (Law Office of Jason Klein, PLLC), and Erik Williams (Executive Director, Connecticut NORML) The East Coast is a starkly different business landscape than it is out West. Medical marijuana programs are more restrictive, and with that, the number of business opportunities. Erik Williams pointed out that Connecticut will have a minimum of 3 growers and max of 10 growers for the whole state. His guess is 6, but even if it was 10, that doesn’t leave much room for many people to get in from a business standpoint. He recommended looking at a multi-state model if someone is considering investing in the Northeast. Erik Williams went on to say that if Massachusetts issues rules on MMJ by May (unlikely), then licenses will be issued by summer and dispensaries will open by the end of the year. Dick Evans highlighted the fact that right to farm laws will impact the ability of Massachusetts’ local officials to zone and regulate medical marijuana garden areas of 2 acre minimum plots. Earlier in the day I had the wonderful opportunity of talking with Jason Klein and the situation in DC. We both pointed out the contradiction of the federal government raiding medical marijuana across the Western United States, even though medical marijuana will be sold very soon down the street from Congress and the White House. Mr. Klein pointed out in his section of the presentation that D.C.’s law will allow for up to 570 plants total in all the district, which is ‘minuscule compared to the population size.’ As Jason Klein told me before the presentation, and to the crowd during the presentation, ‘expanding the limited qualifying conditions list is the important near-term goal for DC’s medical marijuana program.’ MMJ Marketing and Advertising Strategies That Work – Micah Johnson (Cannapages.com), Andrew Shotland (Local SEO Guide Blog), and Derek Lebhan (Cannaline) If there is any area that peaks my interest the most in the marijuana industry, it’s marijuana advertising. It’s such an inegma to me, as there doesn’t seem to be any ‘go to’ source on the subject. Almost all of the literature out there is based around marketing a dispensary, which was adequate when medical marijuana represented an overwhelming majority of the profitable cannabis industry. But all of that was turned on it’s head when Washington State and Colorado passed their legalization initiatives. I think a speaker from another panel, Tripp Keber of Dixie Elixers, put it best when he stated “On Nov 6 there were 105,000 registered medical patients in Colorado. From Nov 7 we’re talking about an addressable market of one million plus customers. This is explosive, hockey stick growth, a watershed moment.” By Mr. Keber’s estimation, which I find to be pretty accurate, medical marijuana will only represent 10% of the overall market, at best. The marketing and advertising strategies for the cannabis industry need to reflect that fact. Long gone are the days when inventors and entrepreneurs needed to focus all of their marketing energies on getting their product or service into as many dispensary locations as possible. Now they have to re-focus their marketing strategies towards brand marketing, the same as any other product or service in any other industry. Think about it – if ‘X’ soda company simply put their products on the shelves in as many stores as possible, yet did no marketing to make their product familiar with customers BEFORE they walked into the place they are going to buy products, how much product would they sell? Humans want to purchase things they are familiar with; the marijuana industry is no different. Unlike a dispensary, where the budtenders have a relationship with their limited customer base and can tell them about new products as they see fit, the purchasing experience is going to change rapidly. Customers from outside of legalized states will be coming to Washington and Colorado to buy products that they have seen online or in some other way in their area. Businesses need to calculate for this. Have a vaporizer or sometime of electronic pen that people can use to smoke concentrates out of? If so, you need to think about how a customer is supposed to choose your product out of the dozens if not hundreds of other products virtually exactly the same as yours. Will ‘having it on the shelf’ be enough? What if you have a cannabis infused product such as a beverage or edible? Are you going to do the marketing work it takes to become a name brand like Pepsi or Oreos or are you going to be one of those generic lame brands that people only buy if it’s on sale? If you can’t tell, I have a lot to say about this issue, so plan on several articles on this subject in the near future Raising Arizona: How to Ramp up in the New Marketplace – Kris Krane (4Front Advisors) and Ryan Hurley (Rose Law Group) It was very interesting to hear about the rollout of medical marijuana safe access points in Arizona from people working on the ground. Something that I have been pointing out to people that e-mail me from Arizona, and panelist Kris Krane touched on, is that there wasn’t a proper vetting process of eventual dispensary owners in Arizona. Anyone could enter the lottery, and since the winners were picked at random as opposed to a skill based selection process, there will no doubt be some dispensaries that are better than others. According to Ryan Hurley, “permits have been issued, 9 months are left for operators to build and open doors in Arizona.” It was also interesting to hear about how people are jumping the gun on the dispensary rollout and are opening safe access points anyways. It reminds me of Oregon, where people are using layaway hydroponic equipment programs, opening private clubs, and my personal pet peeve, taking ‘donations.’ People that do things like that make it harder for people that are actually following the process, and often times, patients get caught in the crossfire as Kris Krane once explained to me. Customer Retention: Grow Your Business by Tracking Data And Encouraging Loyalty – Amy Poinsett (MJ Freeway And Software Solutions) Customer retention is extremely important for a dispensary to survive, and it will no doubt be even more important to non-medical marijuana outlets, as customers can bounce around more freely. I have heard so many horror stories about people going to dispensaries to get their much needed medicine, just to get subpar meds and/or get treated like a number instead of a customer. Amy Poinsett recommended using ‘customer’ instead of ‘patient’, and that dispensary staff should say hello and goodbye to customers in order to build relationships with the customer base. She also recommended something that I think everyone can agree with – customers like it when they get free gifts, and that gesture can go a long, long way! California: How to Survive Amid Uncertainty – Amanda Reiman (Drug Policy Alliance), and James Slatic (MedWest) If there was one thing that I took from this particular panel it is the different scenarios the Bay Area is experiencing compared to Southern California in regards to the ongoing battles with the feds. Amanda Reiman pointed out that the Bay Area proactively worked with the cities (S.F., Oakland, Berkley) to help set policies in place. Well run dispensaries in Southern California did not, and ‘chaos ensued,’ as Amanda stated. Reiman to dispensary owners: “It’s your responsibility to educate the community, not the patients or media’s responsibility” Amanda told the crowd. Top 8 Mistakes Dispensaries Make and How to Avoid Them – Len Goodman (New MexiCann Natural Medicine), Kayvan Khalatbari (Denver Relief), and Betty Aldworth (Evolution Consulting) In this panel Betty Aldworth talked about the need to ‘reframe perceptions about users from negative to normal.’ The number one mistake that dispensaries make – sexist advertising. When Betty Aldworth said “cannabis ads should respect women instead of objectifying them” the crowd cheered for a reason. No other area of wellness and medicine does that to women, and there is simply no place for it. Capitalizing in Colorado: An Overview of New Opportunities – Robert J. Corry Jr. (Corry & Associates) and Christian Sederberg (Vicente Sederberg, LLC) I found it fitting that this panel was one of the last to end the day. It was kind of a ‘main event’ of sorts. In case you didn’t hear – NEWS FLASH: COLORADO LEGALIZES MARIJUANA, THE LARGEST GREEN RUSH OF ALL TIME HAS BEGUN. This panel was extremely popular for obvious reasons. If you sell grow equipment, fertilizer, paraphernalia, want to open a cannabis club, some other area of cannatourism, you own a media company, clothing company, or some other company that relates to marijuana, etc. etc. Colorado is obviously the place you need to seriously consider moving to. Or at the least, get your product or idea to. Anything to get your thumb in the pie because the pie is enormous, and growing everyday. Something that Rob Corry pointed out is the need to develop mechanisms to stop cannabis from crossing state lines. Christian Sederberg pointed out that industrial hemp is the ‘tiger in the room.’ Both panelists agreed that if a person is a medical marijuana patient in Colorado, they can grow their medical marijuana plants in addition to their ‘recreational’ marijuana plants. That’s 12 plants total, which sounds outstanding to this Oregonian…I thought we had it good, but the desire to move to Colorado is growing inside me by the hour…Amendment 64 re-opens the door in Colorado to wholesalers and retailers without the 70% grow rule. Last time there was no 70% rule people were bringing cannabis to the market as fast as they could, I can only imagine what will happen this time around! Summary Of Johnny Green’s Visit To The 2012 National Marijuana Business Conference This is BY FAR the greatest event I have ever attended, and I have been lucky enough to attend some great marijuana events. I have had a few days to reflect on the event while I was preparing this article, and I can’t help but think of the next conference already. I have never, ever heard or seen such a collection of marijuana minds from around the country. There were 42 speakers at the event, all of which bring more knowledge to the table than a person could ever imagine. I have been to events where there are 5 of these people at best. To be in the same building as all of them at one time, and to be able to pick their brains about what their experience has taught them, and see how their expertise in their specialized area has contributed to the industry is an honor to say the least. I have been getting e-mails from people asking about how to get in on the ‘green rush’ and I think the best way is to follow the speakers from the event, and especially MMJ Business Daily, who made the event happen. Follow both their website and their Twitter feed. I would also follow their publisher Cassandra Farrington as well. They have the inside track on a constantly, rapidly evolving industry. Following them versus following someone else could be the difference between getting rich during the largest financial opportunity in our lifetime, or telling future generations in your family about how you missed out on the ‘green rush.’ I cannot wait until the next conference. Thanks for the stock tip and ticker symbol. I just may decide to buy a block of it.
I'm simply not into drugs. However, I can't make any significant case against marijuana, considering the 'legal' alternatives, from alcohol to prescription drugs. Enthusiasm aside, here's the rub: These laws are a direct conflict between the States and Federal law - with the States pursuing revenue. These laws could trigger a dangerous precedent - one way or another. Looking the other way is one thing; major profiting (taxes) is another. 1. Can a "State" get into the (Federally) illegal drug business? 2. Can a "State" arbitrarily violate ANY Federal law? 3. What precedent(s) are these laws asking to set, relative to the "Feds?" 4. What precedents are these states about to experience, at the hands of the U.S. Justice(?) Department? 5. What reactions can these states expect in the way of 'Federal funding,' as the probable first-step? Being realistic, the loss of Federal tax money would be huge - from the existing marijuana-related money laundering. The impact on the liquor industry would be enormous - with possible impact on still more money laundering. Anyone who got their name recorded in concert with an attempt to 'legally' buy/trade/sell the products would be haunted to an unknown degree. If the State laws are honored, the effect would be the creation of the "New Revenooers," with unpredictable results. Just think of the 'reward' money for turning in your neighbor for growing her/his own. The peripheral 'regulatory' laws - and lawsuits - would be draconian. Imagine having "floating veins;" and being subjected to a "traffic stop" needle stabbing session - if you didn't even struggle. All that because you were tired/and/or distracted when you wandered back-and-forth on the road. Or, "Ma'am, if you have 'floating veins,' you can give us a urine sample; or we'll pass a catheter for a urine sample, if we have to." Then, a news account: "... the driver was handed over to Federal authorities, as State laws were deemed unlikely to obtain the desired conviction. The driver's related State marijuana-law legal information, and related verbal account to the State authorities, are expected to be used in that legal proceeding." The 'good' "bad Guys" would have no mercy on those involved with curtailing 'cartel' profits. The money collected by the States would be touted for "good" causes; only to have that 'quietly' changed - ala the lottery proceeds. (Ever check on where the touted 'school' funding actually ended up? Wow, there are a lot of super- predictable chumps, out there.) When the cheering stops, this is destined to be a real eye-opener!
hey, Sky! always great to "see" you and get your perspective. hope all is well with you.;)
You make some very good points. It would be foolish not to think that the feds (or state for that matter) wouldn't try to turn lemons into lemonade (from their perspective) by creating even more police state legislation to "protect us."
Calling Ron Paul an isolationist is like calling your neighbor a hermit because he doesn't come over and break your window - unknown I WITHDRAW MY CONSENT!
I was looking at it from a business perspective only. I haven't smoked pot in more than 30 year and I do not live in Colorado or a state that is likely to legalize it therefore the issue is really not important to me so I didn't put much thought into the ramifications of legalization.
Calling Ron Paul an isolationist is like calling your neighbor a hermit because he doesn't come over and break your window - unknown I WITHDRAW MY CONSENT! This is how FedGov will spin the whole matter:
Any perceived compliance with unconstitutional “laws” or orders put forth by government employees is NOT recognition of their authority; it is simply the result of carefully calculated submission to an entity exhibiting superior firepower.
#2. To: F.A. Hayek Fan (#1)
#3. To: F.A. Hayek Fan (#1)
the quality of a man’s life is directly proportionate to
his commitment to excellence.’
#4. To: F.A. Hayek Fan (#1)
the quality of a man’s life is directly proportionate to
his commitment to excellence.’
#5. To: F.A. Hayek Fan (#1)
(Edited)
#6. To: F.A. Hayek Fan (#0)
#7. To: SKYDRIFTER (#6)
#8. To: SKYDRIFTER (#6)
Any perceived compliance with unconstitutional “laws” or orders put forth by government employees is NOT recognition of their authority; it is simply the result of carefully calculated submission to an entity exhibiting superior firepower.
#9. To: christine (#7)
Doing well. I'm keeping busy, but thought I'd get back in the 'race.' A lot of truly dangerous stuff is coming our way - quickly. The 'masses' are still minding their 'conditioners.'
#10. To: F.A. Hayek Fan (#8)
It frightens me that so many relate to "...thinking outside the box." Psychologically, just pondering "...the box" is an imposed subconscious limitation. Just "think!;" for God's sake.
#11. To: SKYDRIFTER (#10)
Any perceived compliance with unconstitutional “laws” or orders put forth by government employees is NOT recognition of their authority; it is simply the result of carefully calculated submission to an entity exhibiting superior firepower.
#12. To: F.A. Hayek Fan (#11)
-Alex Kurtagic
#13. To: X-15 (#12)
They'll have to do better than that. I always found Cheech and Chong to be hilarious and definitely not deserving of jail time.
Calling Ron Paul an isolationist is like calling your neighbor a hermit because he doesn't come over and break your window - unknown
I WITHDRAW MY CONSENT!
Any perceived compliance with unconstitutional “laws” or orders put forth by government employees is NOT recognition of their authority; it is simply the result of carefully calculated submission to an entity exhibiting superior firepower.
#14. To: SKYDRIFTER (#6)
I believe that is a common misconception. With the repeal of prohibition the right to regulate mind alterents falls under the same right to regulate intoxicating liqueurs. States rights. The federal government has not been operating in a constitutional matter for way to long....It is the federal law that is in violation of the constitution. These laws are a direct conflict between the States and Federal law
_______________________________________________________________________________ The US government has declared civil war on itself. Its lust for war grew so great... Liberty before death. We run , we live, We fight again, till we win. We did not start this fight. We damn sure did not willingly pay our taxes to buy the bullets and drones that shall be used to kill us. We will correct the violations of this rogue nation....our rogue nation. We will fix this because nobody else can. You will work to help me help us all to fix this failure. After you're done educating yourself,Take Action!!!
#15. To: titorite (#14)
Prohibition was repealed by the feds who created it. Until such is done in the case of 'cannabis,' I'm personally anticipating an upcoming major 'States Rights' battle. Given the horizon and magnitude of the associated corruption; I don't expect the 'States' to win.
While risky, still, I'm more in favor of not tampering with the status quo - with a personal-use-only homegrown 'lifestyle' becoming more popular.
#16. To: SKYDRIFTER (#15)
Since that is the case continue reading my signature over and over until you change your mind about who the winners and losers are going to be. :D I don't expect the 'States' to win.
_______________________________________________________________________________ The US government has declared civil war on itself. Its lust for war grew so great... Liberty before death. We run , we live, We fight again, till we win. We did not start this fight. We damn sure did not willingly pay our taxes to buy the bullets and drones that shall be used to kill us. We will correct the violations of this rogue nation....our rogue nation. We will fix this because nobody else can. You will work to help me help us all to fix this failure. After you're done educating yourself,Take Action!!!
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