10 Simple ways to protect yourself when doing business on Clubhouse

Doing business on Clubhouse can be a great way to grow your business. However, you need to do your due diligence as is expected of any business transaction. That is, to minimise business risks on Clubhouse.

Clubhouse is a social audio app available for iOS and Android where users can communicate in voice chat rooms that accommodate groups of thousands of people.

Clubhouse is an app where people come for social networking and for conversations. However, it is fast becoming the latest marketplace app for buyers and sellers.

The app is actually a better platform, compared to other social media, in terms of interaction. Many people are now using Clubhouse as a free online tool to land jobs, clients and to grow their businesses.

Business due diligence on Clubhouse 

This article looks at why you need to do your due diligence and follow the best practices for doing business on Clubhouse.

Every business whether small, medium or large, needs an information-gathering process prior to committing to a business transaction.
Especially, when doing business on an app. You need to know who you are dealing with. Who is behind the voice?
A background check is designed to reveal any hidden liabilities or problem areas that could occur.

Doing business on Clubhouse
Photo by Nathana Rebouças on Unsplash

Here are 10 simple things you should know, which can help to protect you when doing business on Clubhouse:

1. Use your common sense to protect yourself when doing business on Clubhouse

The number one rule is to use your common sense when trying to do business on clubhouse or anywhere online. Don’t take what people say or write on their bio as the whole truth without research. Be sceptical, assume everyone has an angle until you prove their credibility.

2. Check people’s credibility to protect yourself when doing business on Clubhouse

Google is your best friend when trying to check credibility. You need to look the person up. You never know who’s behind the voice you hear. Check their bio, social media links and see how robust their profiles are and the content.
However, note that a scammer is hoping you’ll check them out. So, they have provided content online, so that when you do the follow up research you can see information about them online.

3. Check for reviews before doing business on Clubhouse

Check for customer reviews. Large followers isn’t necessarily an acknowledgement of genuineness. People buy follows on social media. Although buying exposure isn’t a crime, people have paid for PR over the years, even in big magazines like Vogue, Forbes, The Entrepreneur etc.
However, there are some publications that can’t be bought.

People pay to create a credible brand online. You can buy Top 10, Top 50, Top 40 under 40s etc. Some buy exposure for strategic marketing, others can buy the same for scamming.
So, having their face on big magazines, PR reviews in media, even in big magazines does not mean they are credible. However, you can always tell with a little bit of research.

4. Check their pedigree before doing business on Clubhouse

Check their pedigree – where they went to school, certifications, where they have worked, achievements, members of associations etc.
There are many certified trainers, life coaches, mental health coaches etc around now. Note that these certifications can also be bought – results not certifications make someone credible in this instance.

5. Check for reviews before doing business on Clubhouse

The bigger the risk the bigger your due diligence should be. For example, you may need to take a step further and talk to existing customers. Ask to talk to people in their network. A genuine business will readily provide names of customers or those in their network – any hesitation might be a red flag.

6. Move the transaction offline to conclude doing business on Clubhouse

Where possible, take the transaction offline before you seal the deal. Ask to speak with the person on phone, schedule a meeting etc. Use any means that’ll help you pre-evaluate the person you’re dealing with.

10 Simple ways to protect yourself when doing business on Clubhouse
Photo by Prithivi Rajan on Unsplash

Other things you should consider when doing business on Clubhouse:

In addition to the above measures, here are other things you should consider when doing business on Clubhouse

7. If it sounds too good to be true, it probably is. If someone is selling a business to you that will earn you ridiculous amounts, use your common sense. If it is that easy to make such an amount of money, maybe they wouldn’t be too eager to share the information with you.

8. There is a larger market for coaching business. Many people sell coaching courses or programs that do not exist. Has the person selling a coaching business to you been a success in what they are trying to coach you? Ask as many questions are possible.
Judge people on the basis of how they respond to your sincere questions about what they do and what they are offering to you. If you ask someone questions about what they do and they get defensive then, that is also a red flag.

9. Be wary of people who are constantly around each other, the same squad of moderators that don’t bring in other people to contribute or bring new perspective. Listen carefully for glowing testimonials about people or their courses, endorsements. Watch out for prompts for you to DM certain words. These groups of people might be there to scam or manipulate you especially if they have products or service to sell directly on Clubhouse or backchannel – and on other platforms.

10. Check if those you’re dealing with sound credible and if they have credible people around them. Again, sometimes scammers can get close to credible people who unknowingly give credence to them.


In conclusion, never click a link sent to you via backchannel. Clubhouse does not have a feature for looking up domains. Rather use google to search for the link to verify a domain. As many people begin to use Clubhouse for business, this article has presented ten simple ways you can do your due diligence and follow the best practices for doing business on Clubhouse.