Clubhouse, an all-exclusive invite-only and voice-only app, has taken everyone by storm. Every Instagram influencer is now switching to Clubhouse for an exclusive experience. Clubhouse raised a $1 billion valuation way before it had a business plan. It is now one of the fastest-growing social apps, which will soon be available on most mobile platforms, desktop, iPhone, and Android.
Despite being invite-only, Clubhouse has garnered 10 million active users, which is impressive since it had 2 million users in January 2021 and 1 500 users in May 2020. Vajresh Balaji has done an amazing charting of Clubhouse’s growth.
And now Clubhouse’s CEO Paul Davison plans to offer users ways to monetize their platform to “make a living” directly on the app through tipping, ticket events, subscriptions, etc.
How Does Clubhouse Make Money
The Clubhouse has a few tricks up its sleeve to make money. It announced a fundraising round on the 24th of January and provided a sketch of the revenue-generating tactics it wants to implement in upcoming months.
Influencers are essential as well because most platforms need them to attract people and make money. Clubhouse actively courts influencers by paying people to post content for their TikTok-style Spotlight function. Some big names include Oprah Winfrey, Drake, Jared Leto, Ashton Kutcher, Kanye West, and Terry Crews.
Clubhouse’s revenue plan is similar to that of Patreon. Patreon lets creators, like The Try Guys, receive funds from their audience and charge a small fee.
Why Is the Clubhouse App Trending
As if the perks weren’t enticing enough, Clubhouse rose to fever-pitch levels of popularity when Elon Musk co-hosted a session with Vlad Tenev.
The reasons for the increasing popularity of the app are:
- A revolutionary, never-seen-before idea of a platform centered on audio-based interactions.
- The invite-only way to get entrance to the app.
- A star-studded user base, including Mark Zuckerberg, MC Hammer, Meek Mill, Elon Musk, etc.
Plus, with the opportunity of having honest conversations with people, we don’t think that people will want to miss out.
Do you think Clubhouse is the next big thing in social media?
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Sponsorships
Sponsorships are one of the most used models in the modern age of social media, with North America spending the most. You can make a living by getting sponsorships on Clubhouse as a content creator. Corporations and businesses trying to market their products to a broader audience are always looking for influencers and celebrities on Instagram. Therefore, they’ll also look for influencers with a big following on Clubhouse.
Similar to YouTubers and Instagrammers, Clubhouse content creators are also paid a certain amount to advertise a brand’s service or product when they get sponsored. However, the Clubhouse gets brownie points for doing a lot more than just paying creators for giving their products shoutouts. Brands on Clubhouse are also paying content creators to make whole new chat rooms on the app specifically for the brand’s product. The title and the description of the chat room are also dedicated to the brand and affiliate links are included as well.
So, sponsorships can also open doors for affiliate marketing for you if that is your cup of tea. Once you start working as an affiliate marketer for a brand on Clubhouse, both you and the brand can benefit from it.
Membership Fee
The Clubhouse has groups that its members can join or create. These clubs are focused on common interests like sports, fashion, media, or entrepreneurship. Clubhouse clubs are like Facebook groups with only audio.
There has been news about club creators charging a membership fee to other members in the future, depending on how popular a certain club is.
One inspiring example of Clubhouse’s success is entrepreneur Helen Pritchard, the co-creator of a breakfast show on Clubhouse called 'Breakfast Minus the Bull*hit.’
After joining Clubhouse a few months ago, she created the 'Loose Women type' breakfast show within two weeks with two other entrepreneurs: Gemma Went and Julie Creffield. Pritchard believes that she and her co-hosts, Went and Creffield, had solid things, and they used Clubhouse to make money from them. Due to their popularity, people now click on their Clubhouse profiles and send them DMs on Instagram to know more about their paid-for products and services.
Apart from hosting her breakfast show, Helen also hosts pop-up rooms where she talks about LinkedIn and her Mastermind Program, which people have purchased for £1,500 within a couple of days. Helen and her partners leverage Clubhouse with a clear CTA in their bio and post about it on social media to invite more people.
It can be a bit tough to have a lot of people pay to join your group if you aren’t popular. To gain popularity, stay consistent and create rooms in your area of expertise. And maybe you can also make £1,500 by selling spots on your program.
Networking
You can find a diverse range of experts from different fields on Clubhouse like celebrities, influencers, small business owners, multimillionaire CEOs, tech giants, and sports players that you can approach in their rooms.
Many also have their social media accounts in their bios, including Instagram and Twitter. Some even invite others to talk to them through direct messages (DMs) for possible job or collaboration opportunities or advice or tips.
The key is to use the app to create rooms in your niche and network your skills to people who might need them. You can follow the example of Stephanie Cronin, who got a work opportunity within two weeks of joining the app.
Stephanie Cronin is the founder of Summers Photography. She was asked to collaborate on a paid membership for women in business, receive inquiries about brand photoshoots, and host courses covering photography basics for people who want to polish their product photography, all within 2 weeks of joining the clubhouse.
According to Cronin, she has also been offered podcast guest interview slots. These appearances will help her reach a wider audience and grow her clientele. Her strategy is to use Clubhouse to host rooms focused on business photography to increase her newsletter list while offering more courses and shoots.
Even though Clubhouse requires time to adjust to, it has a lot of potential because the users are willing to invest their time, so they want to make meaningful connections. These networking opportunities can help you do business with the main people behind big brands via authentic conversations.
Direct Contributions from Listeners
You can receive contributions and funds from people directly on the Clubhouse app. Many content creators link their Cash App or Venmo, or crowdfunding sites, for instance, Patreon. Patreon is a third-party service that almost every creator turns to. However, you can find many different alternatives to it.
Thanks to Clubhouse, you won’t have to turn to Patreon to receive funds from listeners. Clubhouse’s new feature, released in April 2021, allows creators to monetize their content and receive funds. Clubhouse calls their new feature Payments. It allows users to send funds directly to their favorite celebrities, or content creators without relying on crowdfunding sites like Patreon.
To show their support for you on Clubhouse, your listeners need to click on you r profile, tap on the Send Money icon, and enter the amount of money they want to contribute. All of the amounts go straight to the creator without the Clubhouse taking any cuts from it.
As of now, the Payments feature is in the preliminary rollout phase, but it’ll soon be launched all over the world, so everyone can benefit from it.
Investment
You can find a plethora of Dragon's Den-style rooms on the Clubhouse app that are run by social entrepreneurs, investors, and celebrities. These rooms usually have special names such as 'The roundtable — new trends, biz ideas & opportunities' and 'No BS Business 6-7-8-9 figures Scaling', etc. Their agenda can be different but usually, the moderators of these groups invite people to pitch their business ideas to a group of entrepreneurs, investors, and influencers looking to invest, just like Dragon's Den.
The most important perk is that they encourage the audience to ask for advice on how they can market, promote, and expand their brands. The downside, however, is that the feedback can be pretty brutal! So, you need to have thick skin to get feedback. And if you want to hear criticism, you better come prepared to appeal to any potential investors.
Shaa Wasmund MBE made over £20,000 from Clubhouse. Wasmund is a serial entrepreneur and the author of 'How to fix your Sh*t'. She earned more than £20,000 on the audio-only app by promoting her digital course priced at £47 on the app.
She advises other people who also want to get an investment to not oversell their product. She believes that if you join a room and you directly or subtly try to sell your product, it won't work.
Her first goal is to offer genuine help to small brands. This is what she has got an MBE for. Her second goal is to create an engaging user base. Shaa wants to create rooms on Clubhouse where people can freely ask questions regardless of their background. Shaa believes that monetization is just a by-product. Investors can see what you can do. So, why go to these rooms to oversell your products, it will be foolish.
Have you ever hosted a room on Clubhouse?
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Conclusion
Name one human on the planet who doesn’t like something that feels very exclusive just because it’s not easy to get. And then there is the knowledge that you can also earn money from it after you obtain that thing. Who wouldn’t like a piece of that?
The Clubhouse is the exact definition of hard-to-get and good for the bank account. From creating your own conferences clubs to getting investments for your product, the opportunities are endless. And even if you don’t want to monetize your content, you can stay on the app just for fun and lots of meaningful conversations.
If you have not installed Clubhouse yet, you need to do it ASAP for an experience worth trying and to learn new things!
