Hey Champ-

Last year I downloaded that social media app Clubhouse and had a bunch of great conversations for a couple of months. But something doesn’t feel the same lately. What’s the story there? Should I keep spending time there?

-#WhereDidEverybodyGo?

If you’re asking me if you should spend more time in Clubhouse, I think you are answering your own question. Clearly, the value is waning for you.

Clubhouse experienced a meteoric rise when it hit the scene in 2020. The audio-based social media phenomenon went from a meager 2,000 downloads per month in September of 2020 to hitting more than 9 million in February of 2021 and another 8 million in June of 2021. To date, there are more than 28 million downloads of the app, and the app is valued $4 billion.

But while it has had a meteoric rise, the fall is downright cataclysmic. Monthly downloads have dropped to below 1 million per month, and challenges with its ability to monetize, scale, and introduce new features has users turning back to more established platforms.

So, what happened?

Clubhouse strayed from what made it so attractive in the first place. Initially it was an invitation-only community that offered exclusivity to its members. There were legitimate opportunities to end up in the same “room” with major celebrities that you’d never get to share a stage with IRL (In Real Life). But to make money, the app needs a robust user base, and that means opening it up to as many people as possible. That has real consequences. You’re not running into Oprah Winfrey in a random Clubhouse room these days. You may have the opportunity to listen to Oprah interview Adele with 40,000 of your closest friends, but that doesn’t have the same sense of community that was key to what Clubhouse was creating.

The rooms are … different. In the beginning, you could find some really engaging conversations on any matter of topics. Things that were sure to help you in your day-to-day thinking, and to help you get your brain fired up in positive ways. Unfortunately, because the curation of the content and the rooms has been so quickly relegated to the masses, the value has waned for many, resulting in rooms that aren’t nearly as engaging overall. Many of the current rooms in the platform have shifted to gossip clubs and places to discuss the latest conspiracy theories about … well … you name it.

The Competition came. When the likes of Spotify, Facebook, and Twitter realized that people were interested in audio-based experiences like Clubhouse offered, they were quick to provide alternate options. And those platforms all provided features people liked, in places they liked, around the communities they’ve built and trust.

Timing is Everything. Clubhouse soared because so many humans were isolated. The thirst for human interaction was real, and Clubhouse came on the scene just in time to satiate that. But you know what’s better than joining people in virtual rooms to have conversations? Having conversations with other human beings. As life has returned to something more normal, the opportunities to connect face-to-face are coming back and that’s put a damper on the success of, well, all social media really. For the first time in its history, Facebook reported that it is losing users. Yep.

Champ Savage is a marketing expert. It says so right on his business card. He has traveled the world bringing ideas to business owners of all kinds, and his accolades are even more numerous than his passport stamps. Now, Savage lends his expertise exclusively to CAR WASH Magazine and its readers.