Black history month: Annie Malone

Annie Malone of St. Louis, MO (1869-1957)

Annie Malone was a pioneering African-American who some say was actually the first African-American millionaire in the United States (Madam C.J. Walker worked for and was trained by Malone prior to her entrepreneurial journey).

Around the beginning of the 20th century, Malone developed the first chemical straightening product to not damage African-American hair. Since she could not use traditional channels methods of selling products given the racial climate of the time, she became innovative and adopted door-to-door sales, in-person demonstrations, and marketed through the Black press. When she was ready to grow nationally, she hired local agents in cities across the country (and even the world) to do the same thing – providing opportunities similar to what we would find in network marketing today.
In 1918, she founded and built Poro College, the first cosmetology school in America dedicated to black hair care, to train those who were interested in joining her network system. The building of this college was significant because it also demonstrated her commitment to giving to others. Not only was it used to train people in cosmetology, but it also became a center for major African-American activities giving access to people who had been denied it for so long. She was also a passionate philanthropist, giving much of her fortune to

At one point in the 1920s, Malone was reportedly worth more than $14 million.

Unfortunately, much of her fortune was lost between her outstanding generosity, lawsuits, and past due taxes. When she passed away in 1957, her estate was reported to be worth $100,000.

There are lessons we can learn from Malone’s experience:

• Hire others to help sell your goods and provide incentives that will motivate them to grow your product or service.
• Create barriers of entry to your market so that others (particularly former employees) will find it difficult to copy your business model.
• Make sure you understand your finances and hire someone to properly maintain them when they become too excessive for you to both work your business and maintain its finances.
• Draw a clear line between business and personal when these relationships are shared with family – put it all in writing.
• Give to your community, within reason, and your legacy will continue beyond your business product.

For more information about Annie Malone, watch this biographical video produced by St. Louis’ PBS channel KETC. Also view the following links:

• Annie Malone Bio at Answers.com
• The Ville – community affected by Annie Malone’s contributions
• Annie Malone Bio at St. Louis Historic Preservation
• Annie Malone Children and Family Service Center

 During the month of February, a series of African-American entrepreneurs and their achievements will be highlighted in recognition of Black History Month.