Katelyn Baker
Well-Known Member
When this entrepreneur quit his day job to sell hemp products online, he ran into trouble with Facebook, Shopify, and more.
Why?
Hemp, though not marijuana, is often associated with it. While it originates from the same plant, cannabis sativa, hemp does not have significant levels of THC, the ingredient that gives you a high. In fact, hemp has less than .3% of THC; marijuana has anywhere from 10 to 30%.
Yet, the plant is nutrient-rich, contributes to the health of the soil, and grows in drought climates well. The fibers of hemp have been used for centuries to produce weaves, suitable for clothing or home decor items. Elements of hemp are healthy for the body as well, making it a popular health food and an essential ingredient in soaps and lotions.
Despite its eco-friendly nature, hemp is still not allowed for widespread cultivation in the US; rather only small-scale pilots are allowed in a few states around the country.
Gunhee Park founded Ministry of Hemp, an online marketplace of hemp brands, using his own funds, to promote hemp-based products products such as clothes toiletries and food. "Our vision is to popularize this plant and its applications among the mainstream," he says.
A bootstrapped start-up, the company is a lean operation with just three employees. Park does much of the outreach and business development himself. "I quit my day job to fight for a plant," he says.
While the cause seemed noble, the path to building a sustainable business has been tricky due to the US's resistance to hemp production.
Park quickly found that even though hemp brands existed, they couldn't follow the traditional marketing and sales approaches.
When the Ministry of Hemp launched this March, he established a Facebook page. Within a few weeks, he notes, the company had hit 4000 likes on Facebook. So he decided to invest in a few Facebook ads and 'boosts' to reach even more customers.
But Facebook rejected his request to boost a post. Why? Because he was in the business of selling hemp products. Park tried repeatedly to explain to Facebook's representatives that marijuana and hemp are two separate and very different products.
Unfortunately, it didn't work. His request was declined, stating that "ads must not constitute, facilitate, or promote illegal products, services, or activities. According to federal law, hemp and other products associated with hemp will not be permitted on the platform."
Park says he hasn't been able to find a solution to social media marketing: "All of our appeals have fallen on deaf ears so now we have to fiddle with the keywords to see what doesn't trigger red flags and their systems still many were promotions get rejected."
His most recent blog, which looks at the health benefits of hemp seeds, a highly-regarded superfood, was also rejected on Facebook as "drug- related" content.
The challenges don't end there.
Ministry of Hemp was using Shopify to run their online store. In June, they received a note stating that Shopify could no longer process payments for the company. The notice stated: "Due to the terms of agreement with our banking partners, we are unfortunately able to accept payments for pseudo-pharmaceuticals."
Park reminded them that hemp is not a drug. But he got the same response by email again. The problem wasn't limited to Shopify. Braintree Payments and Ignite Payments also declined to work with Park.
So far, the only temporary solution that he's been able to identify is using Amazon and PayPal express checkout buttons. But Park isn't thrilled with this solution: "It's a poor customer experience because customers are taken away from our site during the checkout process," he says.
For start-ups looking to promote the sturdy plant that's long grown on this planet, and was ironically the basis of the first American flag, the journey is particularly complex.
Even though, some of these products (notably the seeds) are widely available in large retailers such as Walmart, Trader Joe's, Whole Foods, and Amazon, Park says that it's much harder for hemp-focused companies to sell and market their products. The word hemp in their brand name seems to set off a red flag.
After speaking with other hemp start-ups, Park has come to the conclusion that if a company's core product is the hemp product, it's more troubling to third-parties. However, big box stores can sell it easily because it's not their primary focus.
Park concludes in frustration: "It is ridiculous that products like hemp energy bars, shampoo, and t-shirts are considered high risk."
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Why Hemp Is Still Controversial In America And A Challenge For Entrepreneurs
Author: Esha Chhabra
Contact: Forbes
Photo Credit: None Found
Website: Forbes
Why?
Hemp, though not marijuana, is often associated with it. While it originates from the same plant, cannabis sativa, hemp does not have significant levels of THC, the ingredient that gives you a high. In fact, hemp has less than .3% of THC; marijuana has anywhere from 10 to 30%.
Yet, the plant is nutrient-rich, contributes to the health of the soil, and grows in drought climates well. The fibers of hemp have been used for centuries to produce weaves, suitable for clothing or home decor items. Elements of hemp are healthy for the body as well, making it a popular health food and an essential ingredient in soaps and lotions.
Despite its eco-friendly nature, hemp is still not allowed for widespread cultivation in the US; rather only small-scale pilots are allowed in a few states around the country.
Gunhee Park founded Ministry of Hemp, an online marketplace of hemp brands, using his own funds, to promote hemp-based products products such as clothes toiletries and food. "Our vision is to popularize this plant and its applications among the mainstream," he says.
A bootstrapped start-up, the company is a lean operation with just three employees. Park does much of the outreach and business development himself. "I quit my day job to fight for a plant," he says.
While the cause seemed noble, the path to building a sustainable business has been tricky due to the US's resistance to hemp production.
Park quickly found that even though hemp brands existed, they couldn't follow the traditional marketing and sales approaches.
When the Ministry of Hemp launched this March, he established a Facebook page. Within a few weeks, he notes, the company had hit 4000 likes on Facebook. So he decided to invest in a few Facebook ads and 'boosts' to reach even more customers.
But Facebook rejected his request to boost a post. Why? Because he was in the business of selling hemp products. Park tried repeatedly to explain to Facebook's representatives that marijuana and hemp are two separate and very different products.
Unfortunately, it didn't work. His request was declined, stating that "ads must not constitute, facilitate, or promote illegal products, services, or activities. According to federal law, hemp and other products associated with hemp will not be permitted on the platform."
Park says he hasn't been able to find a solution to social media marketing: "All of our appeals have fallen on deaf ears so now we have to fiddle with the keywords to see what doesn't trigger red flags and their systems still many were promotions get rejected."
His most recent blog, which looks at the health benefits of hemp seeds, a highly-regarded superfood, was also rejected on Facebook as "drug- related" content.
The challenges don't end there.
Ministry of Hemp was using Shopify to run their online store. In June, they received a note stating that Shopify could no longer process payments for the company. The notice stated: "Due to the terms of agreement with our banking partners, we are unfortunately able to accept payments for pseudo-pharmaceuticals."
Park reminded them that hemp is not a drug. But he got the same response by email again. The problem wasn't limited to Shopify. Braintree Payments and Ignite Payments also declined to work with Park.
So far, the only temporary solution that he's been able to identify is using Amazon and PayPal express checkout buttons. But Park isn't thrilled with this solution: "It's a poor customer experience because customers are taken away from our site during the checkout process," he says.
For start-ups looking to promote the sturdy plant that's long grown on this planet, and was ironically the basis of the first American flag, the journey is particularly complex.
Even though, some of these products (notably the seeds) are widely available in large retailers such as Walmart, Trader Joe's, Whole Foods, and Amazon, Park says that it's much harder for hemp-focused companies to sell and market their products. The word hemp in their brand name seems to set off a red flag.
After speaking with other hemp start-ups, Park has come to the conclusion that if a company's core product is the hemp product, it's more troubling to third-parties. However, big box stores can sell it easily because it's not their primary focus.
Park concludes in frustration: "It is ridiculous that products like hemp energy bars, shampoo, and t-shirts are considered high risk."
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Why Hemp Is Still Controversial In America And A Challenge For Entrepreneurs
Author: Esha Chhabra
Contact: Forbes
Photo Credit: None Found
Website: Forbes
