What Is MJ Consulting?
We are currently concentrating on a campaign designed to increase sales but also mitigate some of the effects of 280E. Currently, we are set up to provide a turnkey ticket brokerage or coffee shop franchise. These services are easily integrated into the existing physical location of the cannabis related business, which allows the business owner(s) to take advantage of IRS Section 280e tax consequences. In order to fulfill our mission statement we have four different divisions of MJ Consulting.
MJ Consulting Advertising and Marketing Services
MJ Consulting Services is a Delaware registered C-Corp established in 2015 with the primary goal to concentrate on advertising for the new legal cannabis businesses. Advertising and marketing in the cannabis industry has a different landscape than traditional advertising as normal print and media are not the same for cannabis and that of typical consumer products. State laws ban advertisements on television or billboards that directly market marijuana products. Google, Facebook and Twitter refuse to accept marijuana advertising on their websites. The format for advertising cannabis is somewhat similar to that of liquor. This requires dependency on social media, web presence, video marketing and different advertising media we are developing. We have assistance from two local marketing and advertising firms to provide branding, marketing and advertising to these client cannabis businesses. The cannabis industry is expected to be an annual $45 billion operation with approximately 5-10% earmarked for advertising and marketing. The companies that will dominate this industry are those that can successfully brand and market themselves. Traditionally advertising budgets consist of:
|Traditional Advertising Budget|
|Reserve Funds (for emergencies)||3%||3%||5%|
The current layout for cannabis advertising is to strongly brand the product. From here a constant branding of names and images is followed. Since traditional media cannot be used at this time there is more emphasis on social media presence and broadcast, SEO video marketing. Along with these there is a necessity for a true internet existence with a custom website design and not simply a page on a cannabis directory. It is important to have a place in these directories but you cannot control your SEO nor design on someone else’s website. Thus there is a shift from the traditional paradigm for marketing of cannabis companies. We believe we can effectively market you brand.
EZ Ticket was established in 2004 as an online event ticket brokerage. Michael Davis spun it off as an independent business and registered it with the Texas Secretary of State in September 2008 as an LLC. In fiscal 2014 with a ticket inventory of $220,000 he produced revenues of $658,820 with a net of $121,600. Inventory has been sold down to a current value of $91,000 and a net of $92,504 in 2015.
The EZ Ticket website runs on the WordPress platform. In addition to this website we have approximately 100 additional ticketing websites acting as additional sales portals. We have developed a proprietary plugin which integrates with a database of approximately 8,500 ticket brokers with an inventory in excess of $8.5 billion. Sales from this database results in a 15% commission to EZ Ticket. This plugin allows us to put up additional ticketing websites, format and make live in about 2 hours.
Websites such as Stubhub, RazorGator, Vivid Seats and Ticketnetwork are setup as resell ticketing platforms. Visitors look for premium seats and thus are usually required to pay above face value to purchase these tickets for premium seats to hard to find tickets and sold out shows. The event ticketing business can be very lucrative if approached correctly. Ticket brokers purchase tickets prior to the general public sale and are able to acquire these premium seats. We are able to do this because of subscription services we have to lists of presale passcodes obtained from these services.
The advantage of selling other brokers inventory is that there are no tickets that must be purchased in advance. However, by speculating in advance ticket sales the resell price can be chosen as any markup. What we have found is that the initial markup should be about 90-100% of the original purchase price or face value. What we have found from experience is that certain venues, cities, dates and events have better resell than others. In addition purchasing tickets have certain restriction such as ability to utilize purchasing options as in multiple browsers. The restrictions the primary ticket sellers put in the way of ticket resellers reduces access ability to acquire exceptional tickets. Because of our ability and expertise in network administration we are able to bypass these restrictions and thus have a competitive advantage over other ticke brokers.
There are some event ticket brokerages that produce over $1 million a month in revenue with a comparable bottom line net. That said we find that the ticket resell business to be viable and intend to continue with the operation. We intend to expand the business by increasing our own inventory in excess of $250,000. This should allow us to produce approximately $65,000 a month in sales. To maintain this inventory will require purchasing approximately $35,000 in new tickets which leaves approximately $30,000 of the proceeds for expenses and salaries.
With the nature of the ticket business, our ability to operate it in a means that is viable and our innate knowledge as to how it operates we are selling ticket broker franchises with concentration on placing these in cannabis retail operations. This allows the medical marijuana dispensary and recreational cannabis store to provide another service to their clients in the form of event tickets. As the tagline on www.CannaTixx.com says “Your One Stop For All Your Entertainment Needs”. This allows another stream of income which we find easy to implement since it is all online and very cost effective. The entry level subscription for an online ticket brokerage is just $75/month.
We are currently concentrating on providing a unique solution for medical marijuana dispensaries and recreational stores to reduce their federal taxes by implementing our approach to Section 280E of the IRS Code. See Rationale of 280E Deductions for details as to how this is implemented. The bottom line is that the ticket brokerage can be a very lucrative second legal business and can generate tremendous tax savings for the retail cannabis business.
CannaTixx – 280E Solution
CannaTixx.com is a subsidiary ticket broker website owned by MJ Consulting Services which is the flagship of the 280E solution for cannabis retail operations. This concept takes advantage of existing federal tax court cases to generate legitimate business deductions for a combined entity in the cannabis industry.
We recommend making the name of you ticket brokerage to be something similar to your dispensary. For instance if the name of the dispensary is Green Leaf Medicinals we would recommend to make the name of your online ticket brokerage. www.GreenleafMedicinalTickets.com or something similar. We then recommend the physical location of your ticket brokerage being that of your cannabis business and placing signage outside and in the window of the dispensary. This way the ticket brokerage is presented as an actual physical business.
The entry level for this platform is a subscription service costing $75/month with a minimum of 12 months commitment. This provides the ability of the dispensary to establish a separate legal business in the same location as their “illegal” cannabis business. The concept is that this is an online ticket brokerage being hosted on our servers. The client does not own the website but rather registers the internet domain in their name and owns the domain. We host a ticket broker website on our servers. We have developed a proprietary WordPress plugin to integrate the database feed provided by TicketNetwork’s Private label program. This allows the hosted website to pull the database of tickets of over 8500 independent ticketbrokers with a wholesale value of over $8.5 billion worth of tickets. The platform operates with a third party providing merchant processing, fees, delivery of tickets and customer service. This is the entry level as a ticket broker.
In order to generate the maximum in deductions for the secondary business it must be a viable business. This entails upgrading the entry level to a full ticket broker franchise with a minimum of $40,000 in inventory which would give a retail resell value of $80,000 in tickets. The preference is to build this inventory up to approximately $250,000 or more.
Thus there are 2 streams of income from this business model. The primary is from actual sales of tickets which would optimally amount to about $12,000 per month. The second would be from helping to mitigate federal taxes of the related cannabis business. Based on sales of $1,000,000 annually with a dispensary the expected tax savings by implementing this business model should be approximately $80,000 per year. Naturally, as in any business venture there is no guarantee of your success or profitability. We do, however, give you the benefit of a well-organized system and a concept refined by our many years of experience in the ticketing business. These are only estimates as to what is possible.
MJ Mikes’s Coffee
We have established a working relationship with 2 local coffee roasters in the Portland, Oregon area. This to facilitate the initiation of the MJ Mikes brand of coffee both in the MJ Mikes Coffee Shop and for retail purchase of the coffee itself. The concept of MJ Mikes is to provide another turnkey 280E solution for dispensaries and recreational cannabis stores while at the same time generating additional income. We have secured a third party to provide barista training for our clients in this package. This by American Barista & Coffee School. Portland has been listed as the best coffee city the last 2 years by Time magazine. Which makes this a great brand to build from Portland, Oregon.
The advantages of having the coffee bistro in the dispensary location is this gives the customer added incentive to visit the cannabis operation. The popularity and and utilization of Starbuck’s as a meeting place to conduct business and just relax is well known. This same scenario can be utilized for the dispensary/rec store. It makes for a better experience for the cannabis customer. The coffee franchise is ideal for generating additional taxable deductions past the ticket brokerage and can allow for tax write offs upwards of 50-60% with implementation of both.
Cannabis Reality Television Series
Reality television is currently very popular with television viewers both online as podcast as well as traditional broadcast television and cable. In addition because of the quasi legal status of cannabis it attracts the interest of a large segment of the population. That said we are developing the production of Cannabis Realty, a reality television series centering around a new cannabis business here in Oregon. This is initially to be broadcast over the internet with intention to syndicate it on cable. Previously, we used internet broadcast to successfully advertise small capitalization NASDAQ companies and are using this same business model here as an advertising medium.
We are launching a campaign with www.IndieGoGo. This to generate capital to fund expenses for this project. Initially we are taking on volunteers to help produce, direct, edit and star in the series. This through launching a MeetUp Group.
The incentive to produce the television series to to generate a separate advertising medium for the cannabis industry that we have control over. This same business model was developed by the Founder and CEO of MJ Consulting Services, Michael Davis. Michael served as CTO of a similar company Market News First. MN1 as it was called, provided financial news on small cap NASDAQ companies. The format was to interview the CEO of these companies and promote them through broadcasting these interviews. These paid for interviews were the main source of revenue for MN1 and allowed CBS to value the operation at $100 million in 1998. We expect to duplicate this model with Cannabis Reality.
Finally, MJ Consulting Services is primarily an advertising and marketing firm for the cannabis industry. We have ties to one of the largest privately owned advertising firms in the US. Traditional advertising is useful in the cannabis industry but cannot be used per se. Branding and marketing across platforms is important for consistency and familiarity. Our experts can position your brand to be well recognized in the industry whether it is through print, broadcast or social media. Our mission is to be successful in our field by helping everyone we come in contact with achieve the same.
- 280E Tax Solutions
- Physical Layout
- Real Estate Acquisition
- Financial Operation
- Taxes and Accounting
- And More!
1025 E Powell Blvd
Gresham, OR 97030