By Brad Weissberg/Oct. 17, 2017
Leafbuyer, a website that connects cannabis buyers and sellers, and the Cannabist, the Denver Post-owned cannabis news website, have renewed their partnership.
Mark Breen, co-founder and VP of business development, Leafbuyer, said, “We are very pleased to renew this significant partnership. Being the official deals partner for the the Cannabist has expanded our reach to cannabis consumers all over the country, especially in the Western U.S.”
Mark Breen, co-founder and VP of business development, Leafbuyer.
Leafbuyer has a “deals widget” on every page of the Cannabist’s website, explained Breen. “It displays all the deals from our database in the area where the reader is located. When the reader clicks on the ad a printable coupon pops up,” he said. “The reader takes the coupon to the local merchant.”
The partnership between the Leafbuyer and the Cannabist is 14 months old. “That site appealed to us because they are a national website and they do about 1.4 million visits a month.” The new deal is for one year. The two companies share revenue and data.
Leafbuyer started in 2013. It’s mission is to serve the customer who “wanted to save a little money,” he said. “When were planning the site, we looked at other similar sites and found out that they were all about reviews. In talking with consumers we found that no one was serving the price-conscious segment of the market.”
Picking up on the Priceline, Trivago and Hotels.com model, Leafbuyer isn’t a seller of the plant in any way; it’s a middleman between buyer and seller. “You can’t purchase products on Leafbuyer,” said Breen. “We’ve created a shopping experience for the consumer from the comfort of their home.” The ads shown are listed geographically with users seeing results from dispensaries in their local area.
“Many of the dispensaries have been pushed into industrial areas and people just don’t know they are there,” he said. “Why would I go to that store? To save some money.”
Breen said it’s not always about saving money. “Sometimes it can be about quality,” he said. “Someone can put up an ad and offer the highest quality THC, attracting a certain kind of connoisseur.”
Based in Colorado, Breen said the company is excited about the growing list of states and countries where cannabis is prohibition has ended, either for medical use or adult use. The company’s website is leafbuyer.com.
Seven months ago Leafbuyer went public (OTC: LBUY). It’s currently valued at $108 million.“We’re one of the first cannabis marketing companies to go public,” explained Breen.“This has given us capital to expand.”
Leafbuyer’s business model is a “recurring model” that charges a monthly fee and the arrangement is based on a quarterly, biannual or annual deal. The monthly fees can range from $400 to $1500, depending on positioning on the widget. Leafbuyer currently has 300 clients listing.
Leafbuyer is growing at 30 percent annually. “Growth is great,” he said.
Results are tracked through Leafbuyer’s back-analytics. “We give our clients feedback tell them which offers customers are really reacting to and which ones aren’t generating clicks,” he said. Using ad tracking, Leafbuyer can also tell their clients the effectiveness of an ad. “We can tag the ad views with percentage spent and come up with a pretty accurate ROI.”
The Leafbuyer website attracts 200,000 viewers monthly, but it’s their partnerships with other websites that really bring in the numbers. “We have partnerships with seven other cannabis-related websites,” he said. “And together they bring us around 4 million views a month.”
The other websites, in addition to the Cannabist, are L.A. Weekly, Westword, Phoenix New Times, Grass City, Weedblog and Northwest Leaf.
“Being on all these sites allows us to have a national presence,” said Breen. “There’s now marijuana tourists coming to all these new adult-use, legal markets and we help guide them to the dispensaries.”
“At the end of the day we want to target cannabis users,” said Breen. “When you send ad dollars with us you target actual user and not just someone looking up at a billboard.”