Welcome to the Clubhouse

Clubhouse is the hot social app that you’ve probably heard about even if you are not a member. The app has received considerable buzz in large part because of the participation of celebrities and the financial backing of high-flying investment firm Andreessen Horowitz. But because Clubhouse operates on an invitation-only basis right now, many would-be members are watching from the sidelines. Let’s take a closer look at Clubhouse.

What Is Clubhouse?

First off, what is Clubhouse, exactly? Strictly, speaking, Clubhouse is a social media platform where members communicate exclusively via audio chat on their mobile phones. You can have a one-on-one chat with another member, or you can participate in a Room, which are moderated group chats.

The Rooms cover a wide range of topics, and they can operate as regularly scheduled chats or ad-hoc conversations. On any given day, depending on your personal interests, you might find Rooms being organized around self-help topics such as “Let’s Talk about Improving Your Mental Health,” current events, conversations about race, culture-related topics such as books and art, marketing tips, wealth management, and more. There really is no limit to the topics explored, and they can become quite rarified, such as a recently conducted Room that focused on esports in Africa. Think of the Rooms as something like radio call-in shows: anyone can “raise their hands” virtually to comment on an agreed-upon topic, but a Room moderator controls who and how many people may talk at one time. The moderator also keeps the conversations lively and on point.

Members may also join Clubs where recurring Rooms are hosted. So, if, for example, you love writing and want to swap tips and ideas with other writers regularly, you might want to join the Writer’s Room. Or perhaps you are a start-up executive, and you want to connect with other like-minded people who share your own interests and challenges, such as attracting investors. Well, there are Clubs for you. If you want to geek out on Instagram, then go for the Instagram Marketing Secrets – Tips, Tricks & Guidance Club, where you can do deep dives with other members on the wonderful world of Insta. Trust us – those Clubs are barely tipping the iceberg.

Why Clubhouse Is Hot

As of December 2020, Clubhouse consists of 600,000 registered users and is worth $100 million (and yes, you can find Rooms where members discuss whether Clubhouse is worth $100 million). Why is it getting so much buzz – and investment money? A few reasons stand out:

• Clubhouse was launched as the COVID -19 pandemic was spreading in April 2020 and many of us were living in strict lockdowns. Our daily habits were rapidly switching online, making Clubhouse’s potential audience larger.

• The simplicity of the audio-chat format makes Clubhouse ideal in today’s multitasking world. Members are not required to stare at screens to participate. They can turn on chat rooms, listen to conversations while doing something else, and then engage actively if they wish to contribute to the conversation. One can be as active or passive as they want.

• Because the Rooms cover a wide range of topics, chances are on any given day, someone will find a topic that interests them.

• The app has celebrity appeal. Members range from Drake to Jared Leto. Yes, it’s possible to hang out in the same Room listening to Drake discuss music (although that’s not quite the same thing as actually talking with Drake).

• The invitation-only nature gives Clubhouse mystique. Anyone can sign up. But a person will then be placed on a waiting list unless another member vouches for them and moves them up to the head of the line. (It’s called Clubhouse for a reason).

Right now, Clubhouse is just starting to figure out how to make money and to help members make money. For instance, Clubhouse just announced that the app is testing a program to allow creators to get paid directly—through features like tipping, tickets or subscriptions.

Suggestions for Brands

Clubhouse does not provide options for brands to participate and share content – but that may change as the app figures out ways to monetize. For now, we suggest businesses learn from individuals who are on the app. Go ahead and sign up and wait to have a personal membership approved, and then start exploring the different ways people share ideas with each other via the moderated Rooms. (Technically, businesses already are on Clubhouse in the form of executives who represent startups.) Of course, Clubhouse is a personal app like Facebook, but there’s nothing wrong with a business learning from its own employees’ experiences. We suggest that businesses:

• Learn from the audio-chat interface. Clubhouse can be a terrific way to sharpen one’s speaking skills and then transfer those learnings to forms such as podcasts.

• Rely on Clubhouse as a cultural sounding board for topics entering the mainstream.

Clubhouse is a proving ground for audio content. As such, it’s worth learning about – if you can get in.