How The Madam CJ Walker Business Model Applies To The Digital Age

For lack of more prestigious words, Madam CJ Walker should be known as the Queen of self-promotion. Born as Sarah Breedlove, Madam CJ Walker has solidified her legacy as the first female self-made millionaire in America. Together, the use of sales techniques and simple business practices, coined the “Walker system,” constructed the business model that propelled Madam CJ Walker into success. The Madam CJ Walker business model is timeless. Applying what worked then, certainly can be applied in today’s fast-paced digital age.

What once was a simple door-to-door business quickly scaled to a million-dollar empire. Madam CJ Walker is an inspiration and a clear example that creating a system, being authentic, selling direct to the consumer, and building a tribe actually works. Largely due to access to the internet and social media, these same business practices translate seamlessly online.

Madam CJ Walker understood her clientele. She was aware of the importance of a simple, easily to follow regimen that would not be complicated. A no-fuss and burden-free, easy-to-repeat system means happy customers. Happy customers make frequent customers. Frequent customers equate to consistent cash flow.

Fast forward to the digital age, and this business practice still rings true. Customers find value in products that are easy to use, simple, and convenient. According to a press release by Research and Markets, a data company, the global subscription economy, which includes everything from streaming services to subscription boxes, is expected to gross $996 billion by 2028. Companies worldwide are leaning on subscription services to increase profit margins.

Nothing is easier to tell than the truth and that is what Madam CJ Walker did. She won her clients trust and money by telling the story of her hair and scalp journey. Using her own hair as a first hand testimonial, allowed Madam CJ Walker to be authentic while building her brand Identity.

Sprout Social reported on data that showed consumers want to learn more about the people behind their favorite brands. For example, seventy percent of consumers reported feeling more connected when a brand’s CEO is active on social media. 

Madam CJ Walker built her brand one customer at a time. Relying on door-to-door sales, churches, word of mouth, and later catalog sales, Madam CJ Walker was able to grow sales and bring her product directly to her customers.

Today, direct-to-consumer is a popular business model. Social media, e-commerce, and digital platforms allow entrepreneurs to sell online without relying on a distributor or shelf space in brick-and-mortar locations.

Servicing the people around you and offering a product that people can rally around is impactful. Madam CJ Walker not only sold her products, but she also built a community of women who wanted not only to grow their hair, but also to become businesswomen. The collection of sales representatives known as hair culturists grew to over 40,000 women.

Similarly, in today’s digital world, brand ambassadors are used to scale sales and build community online. Brand ambassadors promote a brand’s products and services to boost awareness, strengthen a company’s reputation, and increase revenue. Through the use of brand ambassadors and user-generated content, brands are building strong communities of loyal customers.

Madam CJ Walker started from humble beginnings. With no formal education,  business partners, or seed money, a young widow earning money as a laundress morphed into an influential businesswoman and philanthropist. The use of a few core business practices propelled what some would call a side hustle into an enterprise. Her business model, although simple, still has a mighty punch. A punch so powerful that the strategies used by Madam CJ Walker translate directly to modern business models despite the heavy reliance on the digital era of this century.