Neil Patel and Eric Siu debate whether Clubhouse can make you money. Direct sales are unlikely due to small user base, but networking with investors and accessing deal flow work. Early adopters see rapid follower growth, though the platform may be a fad.
All right. Today we are going to talk about if Clubhouse will make you rich. So in the last episode, if you haven't checked it out yet, check it out. Clubhouse is a, let's, it's an audio chat app for— Neil put it pretty well. It's basically networking really fast. And we talked about if we think it's the next big thing or not. So in this episode, we're going to say, we're going to talk about if it's going to generate richness or wealthiness for you. Neil, what are your thoughts?
I don't think there's an easy way to make money from Clubhouse if you're just trying to sell products. What I mean by that is if you're trying to sell e-commerce products, or even if you're in B2B and you're trying to sell one-off contracts, I do think it's going to be really hard. It may get you some leads here and there. If their network grows much bigger, I'm talking about like 50, 100 times the size, sure, you may be able to do much more business development and sales from it. So directly, I don't think you can end up getting rich because it's not the place to sell eBooks or products or anything like that. And selling services, you'd have a lot of high-ticket items because Clubhouse doesn't have enough people on there yet for you to make money at scale like LinkedIn. Think about this. If you reach out to 100 people and connect with them, majority will not close. So Clubhouse just has a lot less users than most social networks. But from the aspect of indirectly making you rich, I think it can. And here's what I mean by that. There's people on Clubhouse that can invest in your business. There's people on Clubhouse that can give you ideas on how to grow your business faster. There's people on Clubhouse that can help you when you're stuck somewhere in your business or your career. So from that aspect, I think the advice and the networking that you can get, because some of those networks can also bring you capital, like investors, that can help you make more money. I just don't see it as a direct way to make money, if that makes sense, Eric. Yep.
Makes total sense. I think on my end, what I saw maybe 2 days ago was Kevin Harrington, I think Daymond John, Grant Cardone were in a room and it was a Shark Tank room. And what they were doing was they were taking pitches from people and they were actually investing. And so from that aspect, to Neil's point, there is, you have investors hanging out and there's potential deal flow for them. Honestly, for them, I think it was just like an experiment to see how it would do. But that does If you think about the quote, your net worth is your network, or your network is your net worth, Clubhouse is fundamentally people hanging out. You're able to build relationships with people quickly. And then I actually heard yesterday when I was in the Asian American chat, one person was talking about how he met someone in Clubhouse and angel invested in their company. And that's an example right there. And so some of the people that I've connected with, really cool people, I can see myself doing collaborations with them later. Even doing podcasts as a first step, the 14 podcasts that I was booked on, we are going to talk, we're going to become friends, and we'll see where that goes. But the people that are on there that are actively providing value and connecting with others, you have to be at the same level or you have to be doing something interesting already. That way, the people that are, that have the capital or the people that have the deals, they're going to want to connect with you. I think if you're starting from ground zero, let's say you don't have a business or anything like that, You should focusing on— focus on networking with the people that are around your level. So I think to Neil's point, basically the relationships, if you're going to play the long game, will add a ton of value. And I do think it's going to make you rich in the long term. You just have to keep playing on Clubhouse. It remains to be seen if you can spend less than an hour a day on Clubhouse and actually have some semblance of an audience. We'll see what happens there. But right now it seems like the rich are getting richer in the app, right? The people that have 10, 15, 20,000 followers plus. Those are the ones that whenever they throw a room, a bunch of people will join. We'll see what happens with that.
Do you think it's realistic for all those people to keep spending an hour to 2 hours a day on Clubhouse?
No. Nope. Nope. No way. And so we'll see what happens. Is this going to be a fad? It could very well be. But, um, again, personally for me, I've never been so addicted to an app. I will say when I saw Neil speak at 5:30, 6:00 AM, he had 100 followers and he spoke and boom, he's at 600. It's early days right now. You should get in now while you can.
I had to speak to get those followers though.
What'd you say?
I had to speak to get the followers though.
Correct. You know what's funny? Neil didn't say much. He just said, hey, I'm Neil. Here's what I do. Boom, 600 followers. So—
I don't know if it was that easy, but actually you're probably right. 'Cause I didn't think, I don't think I talked for more than a minute.
You did, you did actually add value around investing and what people should do, but a minute is very succinct. So point is, I think Neil and I agree that You got to spend time on it to be successful. The question is, how realistic is it for you? And is it the right thing you should be focusing on? Because I think there's a time and place for this. Maybe the best play is when you're free on a weekend. Right now, we're still locked down right now. Maybe you spend, maybe you spend 4 to 6 hours on one day for the week. You just go hard on it. And then the rest of the time you focus on your business. Neil?
Yeah, I think we pretty much covered it all. Guys, check out Clubhouse.
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