Is Clubhouse Still Worth it for Businesses?

Clubhouse social media app icon

The Clubhouse social media app recently launched on Google’s Android OS, more than a year since it became available on iPhone. We’ve also studied the Clubhouse stats and noticed that the startup generated hundreds of millions in funding in the past year as investors scramble for a piece of the pie of this latest social media darling.

But is the platform worth it for businesses to invest time and energy into? It does boast almost a million subscribers, and some business leaders swear by it. However, considering that the original hype has passed and fewer users are joining the app daily, should you still get on board?

A Recap of the Clubhouse App

Originally founded in April 2020, Clubhouse was launched as an iPhone-only audio chat application. The platform allows individuals to host and join different audio-only conversations. It’s now also available to Android users. Users, however, must be invited to join by a current user. Each user gets two free invites and can earn more through using the app.

When you open the app, you’ll find a list of “rooms” you can join. Alternatively, you can create a room and invite others to join. All rooms are created and managed by the leader. Also, all sessions are invite-only. You can only speak in rooms to which you’ve been invited to the “platform” to speak.

Just be aware that all sessions are exclusively audio, there are no videos or pictures, and even text is limited. As well, there is no recording. It is truly live audio and then gone.

How Promising is the Future of Clubhouse?

Clubhouse originally gained plenty of traction when celebrities such as Drake, Oprah, and even Tesla and SpaceX founder Elon Musk joined. Kanye West and Mark Zuckerberg are two other celebrities who were using the platform. According to some sources, Clubhouse had over 13.4 million users and was worth a staggering $4 billion earlier in 2021.

However, that is no longer true. Recent stats show that Clubhouse may already have peaked and is currently on a downward trend. The evidence is in the dwindling active userbase. According to a recent BBC article, Clubhouse currently only has about 900,000 users, down from around 2.7 million in March, 9.6 million in February, and over 13 million at its peak in January.

Conflicting Opinions

However, with the recent launch on Android OS, these numbers could start trending upwards once more. Some experts agree, including Enders Analysis technology head Joseph Evans. He says that we shouldn’t judge its success based on how many people are using it. It should instead be based on the quality of content. Indeed, other people, such as Medium contributor Dereck David, say Clubhouse is already dead, adding that “it just doesn’t know yet.”

“Clubhouse hasn’t needed to make money yet,” argues another tech expert. “It still exists solely on venture capital cash.” This could pose a problem later down the line when it needs to bring in cash flow and has no real means to monetize as needed.

Dereck and many other observers believe businesses, especially the smaller brands, should consider these things before joining;

  • Dwindling user base

    As more people, including investors, realize that Clubhouse is built on potentially shifting sand, they may leave. The platform needs to create a long-term plan for where the platform is headed to keep users. The dwindling numbers are a tell-tale sign, users are getting bored. The app has already lost over 90% of its original user base, partially due to the invite-only signup process. Many users are frustrated that their friends can’t easily join.

  • Clubhouse mainly targets prominent brands

    With the way it’s currently designed, Clubhouse benefits big brands with huge followings. Smaller businesses with only a few thousand fans may never get traction on the platform. And, even if they do make it onto the platform, it will take significant time to get invites to their fans and to build an active community.

  • Everything it does, you can do Twitter or Facebook

    Twitter already has copied and created an audio-streaming platform known as Spaces that offers the same benefits as Clubhouse without the limiting restrictions. Facebook is also currently testing a web-based app known as Hotline that offers the same features. Because of this, Clubhouse may fall behind as new users find it too hard to access or move their followers from one platform to another. Or, perhaps Clubhouse will become the “VIP” room of audio spaces? It all depends on traction.

So, What Should Your Business Do?

First, remember that social media exhaustion is a real thing. People are tired of switching between social media networks to keep track of events and stay in touch with friends. And, as a business, you should ensure you are regularly present on the key social media platforms where your ideal audience and best community are present. As Facebook and Twitter improve their audio spaces, Clubhouse may lose prominence. However, if you want to share your expertise, and have an “early-adopter” audience that likes audio-only rooms, Clubhouse is the current place for you.

Looking for help? Tired and believing there has got to be a better way?

Let's talk about your business. With over a decade of experience leading companies and transforming lives, and a Master's degree in Org. Development and Leadership, Mike can help you find the best way forward!

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