Clubhouse: The Rise and Fall of the Audio Hype House (and What You Can Learn)

Remember Clubhouse? In 2021, it was the hottest ticket in town – an invite-only audio app where tech bros, celebrities, and the FOMO-stricken flocked to chat about everything from NFTs to the meaning of life. But like a New Year’s Eve party, the hype fizzled out faster than you can say “blockchain.”

So, what went wrong? And is there any hope for a comeback? Let’s dive into Clubhouse’s story and uncover the marketing lessons hiding in the wreckage.

The Rise (The FOMO-Fueled Frenzy):

• Launch (March 2020): Clubhouse drops into a world hungry for connection during the pandemic. The invite-only model sparks FOMO like wildfire.
• Exclusivity: Elon Musk, Oprah, and Drake grace the app with their presence, catapulting it to mainstream fame. Everyone wants in on the action.
• Growth Explosion: By February 2021, Clubhouse boasts 10 million weekly active users. This is their peak moment – the top of the rollercoaster.

The Fall (The Party’s Over):

• Open to All (July 2021): Clubhouse ditches the invites, hoping for more users. Instead, they lose their “cool factor” and dilute the experience.
• Copycats Galore: Twitter Spaces (launched in May 2021), Facebook Live Audio Rooms (launched in June 2021) – everyone’s jumping on the audio bandwagon, stealing Clubhouse’s thunder.
• User Fatigue: Notifications galore and endless rooms filled with mediocre content… the novelty wears off fast.
• Tech Troubles: Glitches, crashes, and a less-than-stellar user experience don’t help matters.

The Smarketer’s Diagnosis (Can Clubhouse Be Resuscitated?):

Clubhouse isn’t dead yet, but it needs a serious dose of strategic CPR. Here’s where they went wrong – and how they can revive their flatlining app:

Strategic Missteps:

1. Identity Crisis: Clubhouse struggled to define its core purpose beyond being a “live audio app.” Was it for networking? Entertainment? Education? The lack of focus confused users and diluted the platform’s value proposition.
2. Ignoring the Community: Instead of nurturing the unique communities that were organically forming, Clubhouse chased after celebrity endorsements and mass appeal. This alienated early adopters who craved a sense of belonging.
3. Relying on FOMO: The initial invite-only model created hype, but it wasn’t a sustainable growth strategy. When the novelty wore off, Clubhouse lacked a compelling reason for users to stay engaged.

The Strategic CPR:

1. Embrace the Niche: Instead of trying to be everything to everyone, Clubhouse should double down on niche communities. Become the go-to platform for specific interests and passions. Think book clubs for entrepreneurs, language exchange groups, or even live therapy sessions.
2. Empower Community Leaders: Give moderators the tools and autonomy they need to create engaging and safe spaces. Reward them for their contributions and make them feel like valued partners, not just volunteer babysitters.
3. Build a Sustainable Ecosystem: Look beyond live audio. Create a platform that supports asynchronous content, community-generated resources, and ongoing conversations. Think of it like a hybrid between Reddit, Discord, and a virtual conference center.

Real-World Inspiration (They Did It Right):

• Disciple Media (UK, founded in 2010): This platform empowers creators and brands to build their own private, branded communities. They offer a suite of tools for live events, courses, and member-only content, creating a thriving ecosystem that generates recurring revenue.
• Geneva (US, founded in 2019): This audio-based social app focuses on small, intimate groups and real-time conversations. Their emphasis on privacy and meaningful connection has helped them build a loyal following. While exact numbers aren’t public, they’ve raised over $21 million in funding, indicating investor confidence in their approach. Update: have been acquired by Bumble

Lessons for Startup Founders (Don’t Repeat Their Mistakes):

• Have a clear purpose: Know what problem you’re solving and who you’re solving it for.
• Build a strong community: Foster genuine connections and empower your most passionate users.
• Diversify your revenue streams: Don’t rely on a single monetization model.
• Evolve with the market: Don’t be afraid to experiment and adapt as your audience grows.

The Bottom Line:

Clubhouse’s story is a cautionary tale for any startup riding the hype wave. But it’s not too late for a comeback. If they can learn from their mistakes, they might just find a new audience and a sustainable path to growth.

And for the rest of us? Let’s take notes, avoid the pitfalls, and build brands that last longer than a New Year’s resolution.

References:

1. Market Realist: What Happened to Clubhouse?
2. Business of Apps: Clubhouse Revenue and Usage Statistics
3. Vajresh Balaji: Charting the Growth of Clubhouse Audio App