Sabrina Chevannes:
Well, I mean, like, yes, it’s legal in lots of places, but obviously it’s not everywhere. How much do you come across, you know, in your job? Are all companies doing stuff on the black market?
Johnathan McFarlane:
Yeah, so more a few years ago than now, and the existence of the black market really is different from state to state.
I mean in Colorado, it’s almost been entirely eliminated. Prices have gone down at dispensaries compared to when things first started opening up—it was very expensive.
So as the prices in dispensaries go down, and not just the prices but the products in dispensaries are also thoroughly tested by third-party labs, those things evolve. There’s not really a whole lot of reason for somebody to go outside of that infrastructure and do something illegal when you can get a tested product legally.
Like, why would you go that route? Why would you do something illegal when you didn’t have to, and the prices are comparable and it’s safer to go legal?
But that’s not the case everywhere. Places like California have a massive black market—far bigger than the legal market, I believe. And it’s because the industry there has been throttled by the state government.
It’s taxed so high that it’s really expensive to go into a dispensary. So if you can buy from someone down the block for, I don’t know, an eighth for $20, then you’re just going to keep doing that instead of going to a dispensary and paying double.
But in most places with established legal markets, over time the black market diminishes. Colorado, Washington, Oregon—states that have been doing it for quite a while—have mostly eliminated it.
Sabrina Chevannes:
But you must get companies pretending to be legit when they’re not, right? Surely there are illegal businesses out there pretending to be legal.
Johnathan McFarlane:
Sure, I’m sure there are, but we don’t get a lot of them coming to us. There have been a couple of instances where we were like, “this doesn’t sound quite right.”
For example, once we were talking to a Mexican national trying to set up a business. One of the questions was about crime and cartels in Mexico.
He said it’s really just like paying taxes—you just pay the fees, operate like a normal business.
And we were kind of like… maybe this isn’t a good fit for us. We wish you well, but we’re not interested in being involved in a business that needs to pay cartels.
That’s not really our specialty.
Sabrina Chevannes:
I still need to watch Ozark. I think I’m behind a couple seasons now.
Johnathan McFarlane:
Yeah, it’s funny how it starts out innocent and ends up with cartel involvement.
Same with Good Girls too. It’s like all these shows start normal and suddenly it’s crime and cartels.
Sabrina Chevannes:
But how easy is it to set up a dispensary in the US? If someone wanted to go legit, like a local dealer turning into a real business—how easy is that?
Johnathan McFarlane:
It depends a lot state to state. In some places it’s relatively easy and cheap. Oklahoma, for example—license fees were only a few thousand dollars and there was no cap on licenses.
So you’re mostly just paying for the business setup and operations.
But in tighter, newer markets, you might spend hundreds of thousands before you even build or rent a space.
So it varies a lot.
The dispensary business is challenging. Once it becomes normal and saturated, it’s just retail. You’re competing for customers and trying to build loyalty.
It’s not a “set it and forget it” business. A lot of dispensaries fail or get bought out.
It’s becoming more like the alcohol industry over time.
Sabrina Chevannes:
So as a marketing agency for cannabis companies, what direction do you usually go? Medical or social?
Johnathan McFarlane:
Almost never medical. We actually avoid medical claims. We’ve even taken medical-focused businesses and repositioned them for recreational markets.
Because in medical cannabis, you get into risky territory—claims about treating conditions like glaucoma or stomach issues. You can’t really say that.
So in recreational marketing, it’s more flexible.
Common channels are email and SMS marketing—those are huge. Also online ordering and delivery in some states like California.
And branding is very important. It’s not just “we sell cannabis,” it’s about experience—how people feel when they walk into the store, packaging, design, tone.
You’re selling experience, not just a product.
Sabrina Chevannes:
I’m imagining Colorado like the most chill state ever—everyone’s always getting high, there are dispensaries everywhere, and people are just growing their own stuff in their gardens like South Park.
Is that actually a thing? Can people grow their own weed?
Johnathan McFarlane:
Yeah, you can grow your own in Colorado. There are limits on how many plants per person, and it’s for personal use—not for selling.
Once you start selling, that becomes illegal.
So if you’re just growing for yourself, you’re fine.
Sabrina Chevannes:
And what about CBD? It feels like it became such a trend in the UK. Do those products actually work or is it more of a gimmick?
Johnathan McFarlane:
The CBD industry is very saturated and competitive.
In terms of effectiveness, it varies a lot from person to person. Some people use it for sleep and say it works well, others feel no effect.
There is real medical evidence in certain cases though—there are FDA-approved CBD-based medications for epilepsy, for example.
So there is something to it. But overall, what it’s useful for, and what dosages actually work, is still being studied.
A lot of it is also trend-driven. Branding is strong, packaging is attractive, and it became very popular very quickly.
Sabrina Chevannes:
It really feels like a trend in places like London. There are CBD shops everywhere.
Johnathan McFarlane:
Yeah, exactly. It’s very trendy in certain areas, especially urban, creative spaces.
Sabrina Chevannes:
What do you think about cannabis compared to alcohol? A lot of people say cannabis is safer.
Johnathan McFarlane:
Alcohol causes far more harm statistically in terms of deaths and health issues.
Cannabis is generally considered less physically addictive, though psychological dependence can still happen.
There are no recorded fatal overdoses from cannabis alone, unlike alcohol.
But it still comes down to responsible use. Edibles especially can be very strong if people take too much.
And alcohol tends to lead to more dangerous behavior—accidents, risky decisions, and so on.
Sabrina Chevannes:
So you think people are shifting from alcohol to cannabis?
Johnathan McFarlane:
Yes, in many cases people are substituting alcohol with cannabis in moderation.
Sabrina Chevannes:
And the black market—does it still exist much?
Johnathan McFarlane:
Yes, but it depends on the state.
In Colorado, it’s been mostly eliminated because legal prices are competitive and products are tested.
In California, the black market is still huge because taxes are high and legal products are expensive.
So people just buy cheaper illegal products instead.
Sabrina Chevannes:
So overall, what’s your view of the industry?
Johnathan McFarlane:
I really believe it can be a force for good.
A lot of companies in the cannabis space are tied to social causes—sustainability, community work, giving back.
There’s still stigma, so brands work hard to show they’re responsible and positive contributors.
And I think that will continue as the industry matures.