The brand itself contains most of the value
Remember that we’re talking about growing a million-dollar cannabidiol business and then selling it.
If you’re just selling products on Amazon or running affiliate programs, it’s going to be hard to get top dollar for your business. That’s because anyone can sell the same products and the buyer won’t know the difference.
On the other hand — and it’s crucial that you understand this — if you’ve got a popular brand name, that, in and of itself, can be your nest egg.
Remember the Snapple story? About how they built up the brand and sold it for a fortune?
You could have put the same ingredients (“the best stuff on earth,” as they said in their ads) and put it in a different bottle with a different logo and call it Bug Juice and not have nearly the same results.
The guys that sold the company didn’t sell a factory full equipment and a warehouse full of tasty beverages. They sold an extremely valuable name and logo.
Retail marketing is branding
Later in this book, we’re going to talk a lot more about branding. For now, you just need to understand the difference between branding, and, well, not branding.
Not branding = selling other companies’ products under no particular company or brand name (eg: affiliate marketing or selling on online marketplaces).
Branding = selling products or operating a retail shop under your own, unique company name or brand name.
Let’s say you’re working an affiliate marketing business model. You might never have to tell anyone the name of your company. It’s irrelevant. You’re just selling other companies’ products.
The same goes for selling on online marketplaces. You don’t need to worry about things like a cool name, a great logo, a fantastic website, a social media presence, etc. Amazon is your brand, essentially.
On the other foot, if you plan on running a store — whether it be online or in a local shop — you are now in the branding business.
You might still be selling other people’s products, but you’re also selling your business name as a trusted source for those products.
So now you not only have to think about what products you plan on selling and how to best market them, but you also have to think about growing brand awareness and trust.
It’s a whole new ballgame.
Suddenly the name of your company and your logo are of supreme importance. Your company name and logo can make the difference between wild success and utter failure.