Clubhouse, the social network that Elon Musk has just joined, plans to make money from subscriptions
Clubhouse, the popular audio-only social app, is looking for ways to monetize the platform for its creators, CEO Paul Davison told CNBC on Monday.
After debuting last year, Clubhouse is now valued at around $ 1 billion and has over 2 million users. The premise is relatively simple as there are no videos, images or text chats. Users will log into the application and see several live virtual rooms in which they can see the list of participants. If they click on a room, the sound is turned on and they can hear the conversation. Think of Clubhouse as a live, unfiltered podcast app.
More recently, the app saw a spike in users on Monday EST when Tesla CEO Elon Musk joined the platform to discuss a range of topics. Clubhouse’s revenue plan is similar to Patreon’s crowdfunding model, which allows independent creators to raise funds directly from their audience. Patreon charges a small fee on these transactions, however, and it is unclear how much and whether Clubhouse will charge a percentage of the subscriptions.
It also plays a role in a topic that social media users have complained about. If a creator is unable to make money on one platform, they will most likely move to another when it picks up steam. Clubhouse at the very beginning of its existence relies on the fact that it will be able to attract more users by offering them a way to earn money.
There are so many incredible people who are smart, funny, knowledgeable in their field, who really know how to bring people together, Davison told Squawk Box. And we want them to be able to make a living directly from the Clubhouse with things like subscriptions and ticket-based events, and get advice from listeners who happily pay them directly for the experience they create for them.
Currently, users cannot pay for content directly through the app. The platform itself is free, there are no ads or a premium plan for users. Davison said Monday that Clubhouse plans to implement a model sooner rather than later.