#162 - Why Clubhouse Will Fail

Podcast Summary

• The Power of a Persistent Twitter Thread: A well-crafted Twitter thread can reach a large audience and attract attention from media and influential figures, emphasizing the importance of persistence and not deleting content prematurely.

  A well-crafted and engaging Twitter thread can reach a large audience and even attract the attention of media outlets and influential figures. The speaker shared his experience of writing a thread criticizing Clubhouse's potential for failure, which initially received no response but later gained traction and led to media appearances and job offers. He emphasized the importance of persistence and not deleting content prematurely, as the thread eventually reached over 4.8 million impressions and attracted attention from notable figures such as the founder of YouTube and a famous movie director. This example highlights the power of social media and the potential impact of a single tweet.

• The Power of Creativity and Engagement on Social Media: An entertaining approach on social media can lead to significant growth and attention, even for businesses. Stay updated on marketing trends to optimize strategies and effectively reach customers.

  An engaging and entertaining approach on social media can lead to significant growth and attention, even from established media outlets. A random tweet storm, written in an entertaining style like an episode of a popular TV show, can attract thousands of new followers and spark interesting conversations. The tech and marketing world move quickly, and staying updated on trends is crucial for businesses. HubSpot's 2,024 State of Marketing report provides valuable insights on the most effective marketing trends, helping businesses optimize their strategies and reach their customers effectively. The unconventional success of a tweet storm demonstrates the power of creativity and engagement in the ever-evolving digital landscape.

• Clubhouse: Unique Conversations or Fleeting Fad?: Clubhouse faces uncertainty despite hype due to low user retention and need for high-quality content and meaningful conversations. CEO must focus on retention, expand to other platforms, and maintain unique experience.

  Clubhouse, the exclusive audio chat app, has gained significant hype and a high valuation, but its long-term success remains uncertain. The app's unique selling point is its ability to bring people together for meaningful conversations, but its retention rate may not be as strong as expected. The app is currently used for two distinct purposes: creating content and socializing. While content creation, such as panels and Q&As, can attract a large audience, much of it may be mediocre. To ensure Clubhouse's success, the CEO must focus on improving user retention and finding ways to encourage more high-quality content creation and meaningful conversations. Additionally, expanding to other platforms and addressing the exclusivity issue could help attract a wider audience. Ultimately, the app's success depends on its ability to maintain user engagement and provide a unique experience that sets it apart from other social media platforms.

• Overcoming the 'interestingness problem' in live audio apps: Creating a successful live audio app like Clubhouse requires constant investment in features to help content creators and improve user experience to retain and attract more users, despite the challenges of providing live content that appeals to users in real-time.

  Creating a successful live audio app like Clubhouse requires overcoming the "interestingness problem." This problem arises because the app needs to show users interesting and live content within seconds of opening it, which is much harder than finding pre-recorded content. Unlike apps with pre-existing popular content, such as TikTok or Twitch, Clubhouse faces the challenge of catering to various categories and providing live content that appeals to users in real-time. Despite the difficulties, it's essential to continue investing in building features to help content creators and improve the user experience to retain and attract more users.

• Focusing solely on content and big names can lead to engagement issues: To ensure long-term success, balance content, community, and user experience on social media platforms

  Trying to make a social media platform succeed by focusing solely on great content and attracting big names can lead to problems. While it may bring initial growth, it can also result in a lack of retention and engagement once users realize they're not bringing their friends to the platform. Instead, shifting the focus to the social aspect of the network, allowing users to make new friends and connections, can improve retention but may stall growth. Finding a balance between the two is crucial for long-term success. Additionally, the unpredictability of live content can make for great social experiences but poor recording material, creating a dilemma for creators. Ultimately, the success of a social media platform depends on striking a balance between content, community, and user experience.

• Unique perspective and effective communication lead to viral content: Having a unique perspective, the ability to effectively communicate it, and the skill to edit are essential for creating viral content.

  Creating something that goes viral requires a unique perspective and the ability to effectively communicate that perspective. The speaker, who has experienced viral success multiple times, emphasized the importance of having a natural gift for it and learning the craft. He shared how a high-profile investor had expressed interest in his project and, during their conversation, he went on a rant about why he thought it might struggle. The investor was impressed and encouraged him to write it down and edit it, which resulted in a viral tweet. The speaker emphasized the importance of editing in creating effective content, whether it's a tweet, a blog post, or an email. In summary, having a unique perspective, the ability to effectively communicate it, and the skill to edit are key elements in creating viral content.

• Give your brain a break for better ideas: Taking breaks improves creativity and content production by allowing your brain to unwind and process information subconsciously, leading to better ideas and effective content. Identify emotions in your audience to increase virality by using a template to guide your writing with desired emotional responses in mind.

  Taking breaks and allowing your mind to relax can significantly improve your creativity and content production. The science behind this phenomenon suggests that our brains need time to unwind and process information subconsciously, leading to better ideas and more effective content. Additionally, identifying and catering to specific emotions in your audience can increase the virality of your content. By using a template to guide your writing with desired emotional responses in mind, you can create content that resonates deeply with your audience and encourages them to share it widely.

• Storytelling in content creation: Emotions, packaging, and details: Effective content creation involves tapping into emotions, meticulously packaging information, and finding attention-grabbing details, as demonstrated by the evolution of CAPTCHA and its creator's application of this concept in Duolingo

  Effective storytelling in content creation involves tapping into emotions, meticulously packaging information, and finding attention-grabbing details. This process was exemplified in the discussion about the evolution of CAPTCHA and its creator, Louis van Ahn. Originally designed to translate books for Google, CAPTCHA utilized human efforts to solve image classification tasks, which led to the transcribing of millions of books. Van Ahn later used a similar concept for Duolingo, where users translate content for a third-party service while learning a new language. This ingenious approach not only helped websites filter out bots but also contributed to the greater good by making vast amounts of knowledge accessible. To create engaging content, try to replicate this method by evoking emotions, presenting information in an appealing manner, and incorporating relatable, attention-grabbing details.

• The Surprise Gap: Familiarity hiding unexpected truths: Understanding the 'surprise gap' can increase engagement and virality. Agora Financial's success comes from attracting customers with low-cost offers and upselling to higher-priced products.

  Familiar things can hide unexpected truths, making information intriguing and shareable. An example of this is Tom Cruise's real name, which is less known than his movie star alias. This concept, known as the "surprise gap," can lead to increased engagement and virality. Another topic discussed was the success of Agora Financial's paid newsletter business. Despite having a diverse range of free subscribers, their primary revenue comes from paid subscribers, with some paying as much as $35,000 for exclusive content. The business model involves attracting customers with low-cost offers and then upselling them to higher-priced products. This strategy, while potentially controversial due to its perceived target demographic, has proven effective in generating substantial revenue for Agora Financial. For those interested in learning more about making information sticky and contagious, the books "Made to Stick" and "Contagious" by Jonah Berger are recommended.

• Creating Multiple Revenue Streams and Brands in Financial Newsletter Business: Agora's success from the 70s to generating over $100M in revenue demonstrates the importance of multiple revenue streams and brands in financial newsletter business. Offering various subscription prices, catering to niches, charging for expertise, and building a loyal community can lead to significant growth.

  Creating a successful financial newsletter business requires multiple revenue streams and a willingness to scale. Agora, a company that has been around since the 1970s and generates over $100 million in revenue, demonstrates this model effectively. They offer a range of subscription prices, from low-cost to high-end, and cater to various niches within the financial industry. To be successful, it's crucial to create multiple brands and charge accordingly for expertise and access to exclusive communities. Moreover, charging a premium price for high-value content and building a loyal community can lead to significant revenue growth. However, it's important to note that patience and ethical considerations are necessary to build a sustainable business.

• Taking risks for business success: Building a profitable business involves making tough decisions, taking risks, and putting oneself out there, even if it means sacrificing reputation or comfort. Achievable goals include building a paid community or offering expertise, while larger ventures like creating the next Facebook come with greater risks and rewards.

  Creating a profitable business involves making tough decisions and taking risks, even if it means sacrificing reputation or comfort. The path to success may not be easy, but it can be simpler than attempting to create something on the scale of a SpaceX. For instance, building a paid community is a more achievable goal than creating the next Facebook. However, it requires selling one's expertise and putting oneself out there, which can be uncomfortable for some. Additionally, most people may prefer to avoid the potential criticism and mockery that comes with taking risks, even if it means missing out on potential financial gains. Ultimately, the decision to pursue a business venture requires weighing the potential rewards against the risks and deciding whether the benefits are worth the personal cost.

• Leading a successful content team is a continuous effort: Continuously invest in your content team by setting the tone, hiring talent, and fostering a strong team bond.

  Building a successful content team is a continuous effort that requires active involvement from the leader. It's not a one-time task, but a lifetime job. Content creation is essential, and it's important to do it yourself initially to set the tone and culture for your team. When it comes to hiring, look for talented individuals through various channels like mutual connections, social media, or job applications. Don't hesitate to cycle through candidates until you find the right fit. Once you do, invest in them and trust their abilities. Remember, great content creators are valuable assets. Lastly, consider implementing virtual team building activities to foster a strong team bond and improve overall morale. These activities can help create a positive work environment and reduce turnover.

• Team bonding in remote work: Companies innovate with team-building activities like Team Rottery and Nicebreak.fun to foster camaraderie and connection in remote teams, offering experiences from coffee tastings to mental wellbeing activities.

  Team bonding is essential for building strong and effective teams, especially in a remote work environment where opportunities for casual interactions and water cooler conversations are limited. Companies are innovating to address this need, offering team-building activities and experiences to foster camaraderie and connection. Two examples mentioned are Team Rottery and Nicebreak.fun. Team Rottery, with its questionable name but impressive roster of advisors, offers team experiences and lessons in a box, from coffee and tea tastings to inclusion projects. Nicebreak.fun, created by Greg Eisenberg, provides a variety of fun and engaging activities designed to promote mental wellbeing and team bonding. While the effectiveness of these services may depend on individual preferences and team dynamics, they represent a promising solution to the challenge of remote team bonding.

• Identifying Business Needs for Entrepreneurial Opportunities: Engage in conversations with decision-makers, understand their pain points, and examine their budgets to discover untapped markets and create tailored solutions.

  Identifying problems and needs of businesses or individuals in leadership positions can lead to valuable entrepreneurial opportunities. The discussion highlighted a company offering virtual team-building activities as an example. This business model, while starting out as seemingly trivial, has the potential to generate substantial revenue. To discover such opportunities, engage in conversations with decision-makers, understand their pain points, and examine their budgets to identify growing expenditures. This approach allows entrepreneurs to tap into untapped markets and create solutions tailored to specific needs.

• Understanding spending patterns for business growth: Analyzing financial data and daily habits can reveal trends and opportunities for business growth and product development

  Analyzing the financial data and daily habits of individuals, companies, or markets can provide valuable insights for business growth and product development. This concept, known as "wallet share" or "mindshare," involves understanding where and how money or time is being spent to identify potential investment opportunities. By examining the expenses of a media company, for example, one can identify trends and shifts in consumer behavior, allowing for the creation of targeted products or services. Similarly, analyzing the daily habits of individuals can help businesses understand how to capture more of their attention and time. This approach can be applied at various levels, from individual consumers to entire industries, and can lead to significant growth and profitability.

• Managing and Engaging Users on Social Media: Social media companies employ teams to review and remove inappropriate content, train algorithms, and even create memes, offering both challenges and rewards for workers.

  Social media platforms like Facebook and Instagram employ teams of content moderators and algorithm developers to manage and engage users, often with the goal of keeping them engaged for longer periods of time. This can involve reviewing and removing inappropriate content, training computers to recognize different types of media, and even creating memes for marketing purposes. The job can be challenging and monotonous, with the line between work and play sometimes blurred. Despite the potential downsides, many people find the work rewarding, especially when they can use their creativity and sense of humor to connect with others. Ultimately, the role of social media in our lives is a complex issue, with both positive and negative implications. It's important to be aware of the ways in which these platforms shape our online experiences and to use them in a responsible and mindful way.