Did you know that research by the Stanford Internet Observatory discovered that Clubhouse's data was processed by a Chinese company called Agora, contrary to the common belief that it was managed within the United States?

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Clubhouse was invented by Paul Davison and Rohan Seth, in 2020 with a mission to foster genuine and spontaneous dialogue.

The platform was designed to create significant discourse in a virtual setting through Audio, addressing a gap they saw in the social media space.
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​What Made Clubhouse Unique?

• Clubhouse stood out by prioritizing voice interaction, offering a camera-free space for users to engage in live dialogue, thus reducing the stress of visual presentation.
• An invite-only approach was utilized, cultivating an air of exclusivity and drawing early interest from users.

Instant Fame:

• The app quickly made a following, particularly among tech enthusiasts, start up founders, and celebrities who appreciated its innovative nature and networking possibilities.
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• Substantial venture capital was poured into the venture, including a Series B round headed by Andreessen Horowitz, taking its valuation above of $1 billion.
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3 Reasons it Saw High User Adoption:

• Networking: Clubhouse emerged as a platform for professional growth, where users could chat with thought leaders, find mentors, and connect with like-minded professionals.
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• Creative Community: The platform enabled content creators and influencers to thrive, creating engaging rooms, leading talks, and amplifying their brands.
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• Partnerships Magnet: Clubhouse engaged in partnerships with brands and organizations, hosting sponsored events and discussions.

Wherever the Brand Went, Controversy Followed!:

• Clubhouse came under scrutiny for not encrypting its room conversations.
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• The app’s contact upload requirement raised privacy concerns, potentially revealing unwanted connections such as those with an ex-partner or a harasser.

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3 Major Flaws in Clubhouse's Strategy:

1. Obsession with Exclusivity: The platform’s initial heavy reliance on its invite-only model may have hindered its expansion by restricting broader user adoption.
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2. Unclear Revenue Model: Clubhouse’s struggle to establish a stable revenue stream beyond investor funding, made it challenging for the company to scale beyond external funding.
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3. Moderation Oversight: The platform encountered significant obstacles in moderating content, with instances of misinformation, harassment, and privacy breaches leading to user attrition.

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Monthly Decline of downloads from 2020-2023

5 Mistakes to Avoid, If You Want to Build a Billion-Dollar Brand:

1. Entry Barrier: While the frenzy of exclusivity can spark interest, it can also impede growth. Start-ups should aim for a balance, offering distinctive benefits while maintaining accessibility.
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2. Revenue Deficit: It’s critical to build a revenue model from the start, rather than solely depending on investment capital, you can always focus on models like advertising and subscriptions to start with.
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3. Neglecting Moderation: Do not cut corners in content moderation, do invest heavily in robust content moderation systems to foster a safe and welcoming platform for all users, especially in community building.
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4. Neglecting User Retention: Think of creative ways you can engage with your user, by providing additional features, participation incentives, and fostering impactful connections.
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5. Ignoring Feedback: Clubhouse’s significant oversight was the neglect of customer feedback on safety which led to significant user attrition. Start-ups need to remain agile while constantly evaluating user data, seeking feedback, and refining their product.

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