Clubhouse App Business And Revenue Model

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Priyanka Guha

Clubhouse app is a social networking app that has gained immense popularity since its launch in 2020. The app is unique in the sense that it allows users to participate in live audio conversations on a variety of topics. With Clubhouse, users can join rooms and listen to live discussions, or they can start their own conversations and invite other users to participate.

Clubhouse App Might Be the Next Major Social Media Platform! Clubhouse is already being traded as the next big competitor to Facebook, Instagram, and Twitter.

The hype surrounding the new audio app has now reached Germany and is being boosted by a large star line-up and radical shortage. Membership is only possible by invitation

Since membership is only possible by invitation, anyone who has made it into the exclusive group can take part in virtual discussion groups there or set up discussion rooms themselves. It is also possible to follow other users and set push notifications. A bit like Twitter, only with sound instead of text.

What Is Clubhouse App? 

Clubhouse is an audio-based invite-only social media platform. There are no texts, no video, no images, just audio. It is like a modern-day radio or podcast where numerous people are allowed to speak about a topic or have hangouts without the need to share pictures, videos, or texts. 

The format of content looks more like a story, where the content is live and you won’t find it (as of now) in a recorded version.

These virtual audio rooms are managed by a few moderators working as hosts. People can participate in the session by speaking up and other users can join in to listen to the conversation.

Clubhouse app is the type of social product based on voice that allows people, across globe to talk, tell stories, develop ideas, deepen friendships, and meet interesting new people!

Key Statistics

  • Has over 10 million users, most of which were added between January and February 2021
  • Over 18 million people have downloaded the app (AppFigures)
  • The app has been valued at $4 billion in a Series C round

A Quick Look Into The App’s Interface

After the app’s installation, it takes you to the hallway (like a physical hallway where you wait for a meeting) just like “Explore” on Instagram or the “Timeline” on Twitter. That feature translates to a sort of an audio feed.

There are several rooms in the hallway, and one can join in public rooms that suit their interests. This is also just like one would join different threads of discussion on Reddit through numerous subreddits. 

Value Proposition Of Clubhouse App

This app is a space where unlimited learning can get fostered. It has proven to be a platform where knowledge can be boosted, giving one the opportunity to be in discussions with people they won’t ordinarily have access to; learning from their vast experience and using it to boost businesses. 

The fact that one cannot get registered randomly, shuns the possibility of getting spammed by users that have nothing to contribute to the platform

However, once the invite-only model exhausts, we can expect Clubhouse app to become like any other social media platform, with user-generated content as the primary format.

As of now, it gained much traction, all thanks to its successful launch where it attracted high ranking individuals in the world – billionaires, icons in the tech space, digital marketing experts, celebrities, influencers, ex-CEOs of companies and many more men of substance are in these rooms, discussing their experiences and decisions with people and giving room for others to learn.

Many celebrities in the entertainment space have been active on this app: Oprah Winfrey, Kevin Hart, Chris Brown, Tiffany Haddish, Ashton Kutcher, to name a few, have had engaging discussions in the rooms. And how can one forget Elon Musk’s entry into a Clubhouse room!


Clubhouse’s Business Model


Clubhouse clone business model
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Clubhouse clone- how does clubhouse make money

How Does Clubhouse Make Money?

The app is free and ad-free (so far). But we doubt that it will stay that way in the long term. They have to refinance sooner or later. 

In mid-May, this year, the US startup received funding from the infamous investment firm Andreessen Horowitz for almost 12 million US dollars. Clubhouse only had 1,200 beta testers at the time. Currently, there are an estimated 1.3 million users worldwide.

The expectations that the parent company Alpha Exploration will turn the hype into money in the medium term are correspondingly high. The founders have not publicly commented on their plans. Digital expert Kollmann thinks it is likely that the revenue model will be based on other platforms such as Facebook and LinkedIn.

The primary way is usually through advertising. It can be expected that at some point we will see banners and sponsored meeting rooms

Clubhouse clone app development

This is indicated by a passage in the terms and conditions. The commercial use of Clubhouse, for example, to advertise companies or products, is prohibited without permission. There are possibilities that companies will be able to buy this permit in the future.

The second way is through premium accounts that are ad-free or have certain bonus functions. Fee-based meeting/seminar rooms for companies could also be an interesting source of income. Recently, there have been some references to this revenue model in the small print. The parent company, Alpha Exploration reserves the right to introduce or charge a fee for “a subscription product or function” according to the terms and conditions.

The search for a functioning business model becomes all the more urgent the more users the app reaches. Because that also increases the costs. According to Said Haschemi, the analyst at the German venture capitalist HV Capital, there are chances that clubhouse stars will be paid for their presence sooner or later.

Because the most successful rooms are those where famous personalities speak. He adds, “influencers currently have none of it – at least not in monetary terms. If the clubhouse wants to be successful in the long term, it has to make a good offer to influencers. ”

Clubhouse App Funding Information

A couple of months after its launch in May 2020, Clubhouse app raised a series A funding.  Valuing the company at $100 million, a deal was sealed by Andreesen Horowitz that included $10 million in primary capital and $2 million in secondary shares.

This is noteworthy because the app only had around 5,000 beta test users, no unique website, and hardly any press release about the app or the company when this occurred.

In January 2021 a round of Series B funding took place where Clubhouse was able to raise around $100 million with Andreesen Horowitz leading the funding round. Other angel investors increased the company’s capital funding to $100 million and a value of $1 billion.

Clubhouse has garnered $110 million in funding till date.

Clubhouse Is Here Hold The Rein: Here’s How

  • It is a new and unique concept that centers an experience around user engagement
  • Communities are likely to grow quickly emerge around this app, contributing to substantial diversity among users
  • The fact that there are no visual elements, just voice, mean ideas gain precedence over appearances; interests over curated personalities
  • The focus falls on the quality of engagement rather than the quantity, which makes this app more authentic
  • The app’s algorithm cultivates an individualized experience for the user, unlike Twitter & Instagram

After conquering the medium of photos, videos, and blog sharing, social media has now stepped into the arena of an audio sharing platform with Clubhouse at the forefront. The excitement of the audience to use this modern-day radio is huge, but Clubhouse is yet to feed all their desires.

Several businesses and entrepreneurs are aiming to delve into this unique trend of audio-only social media platforms. If you are one of them, you can find an able solution in our business-ready, scalable clubhouse clone script.

Conclusion: Clubhouse App

In conclusion, Clubhouse app is a unique and exciting social networking app that has captured the attention of users around the world. Its audio-only format creates a more intimate and engaging social experience, while its exclusivity has contributed to its popularity.

However, as with any social media platform, there are potential risks and concerns that users should be aware of. Overall, Clubhouse app is a platform with a lot of potential, and it will be interesting to see how it continues to evolve in the coming years.



Disclaimer: The Blog has been created with consideration and care. We strive to ensure that all information is as complete, correct, comprehensible, accurate and up-to-date as possible. Despite our continuing efforts, we cannot guarantee that the information made available is complete, correct, accurate or up-to-date.

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