GD Entertainment and Technology (OTCMKTS:GDET) shares have been red hot in recent days as the company hints at an imminent and sharp shift toward more forceful commercialization of core strategic interests. In particular, the company hinted on Tuesday that it was gearing up to launch an aggressive distribution strategy for its reportedly large built-up inventory of premium CBD product assets.
In other words, the product has been stocked and packaged, and now it’s time to monetize that large base of assets.
The first step in this process is apparently the harnessing of powerful affiliate marketing asset with its announced full acquisition of CBDHempBuzz.com, a premier CBD affiliate marketing site. According to the release, GDET has already integrated and deployed branding and product information for its wholly-owned subsidiary, The Greenery (TheGreeneryCo.com), and will benefit from organic search-driven traffic and affiliate relationships to drive revenues through marketing and product sales of its premium CBD-based products.
“The growth in affiliate marketing as a dominant force in driving sales across most industries makes this an absolutely necessary ingredient in our growing distribution strategy,” commented Anil Idnani, CEO of GDET. “This is hardly going to be the centerpiece of our strategy. But everything ties together, and this means big gains in sales volume, brand penetration, and web presence in a single move, and it more than pays for itself through our own affiliate marketing lead generation for partners.”
This is no joke. According to TheBrandonAgency.com, affiliate marketing generates over 20% of all online sales. Affiliate marketing is an online commission advertisement/marketing process where affiliates get a piece of the revenue pie by turning up leads that actually result in sales. Businesses involved in ecommerce have become highly dependent on affiliate marketing because it gets results and the overhead is managed on a performance basis.
Mr. Idnani continued, “This is a no-brainer. Along with our central ecommerce site at TheGreeneryCo.com, CBDHempBuzz.com will help to lay a foundation for the bigger partnership deals we have in the works.”
The Big Point
So, here we have what appears to be an initial foray into an intensification of commercialization in GDET’s clearly strong CBD segment. The Greenery truly has some very interesting and differentiated products. The company has done a great job with packaging and with utilizing strong themes like local sourcing and natural additives. The main site is first-rate, and the new affiliate marketing vehicle is clearly a strong addition.
But the big point is this: this move is obviously just a first step in what will likely be a series of announcements that drive home what’s on the way – dramatic revenue growth. We would be on the lookout for additional ecommerce accelerants, indications of potential placement in physical store inventories, new marketing strategies, and a likely move toward new strategic partnerships with other brands and channels that drive reach, scope, and volume.
The market appears to be seeing this as well, hence the big jump in price and volume for the stock in recent days.