How an English Teaching App Made $370 Million in 12 Months: Duolingo
How many of you have tried learning a new language and failed miserably?
*Almost Everyone!!*
That’s where Duolingo came and revolutionized the whole industry.
Duolingo is a free, gamified language learning platform that uses a variety of features to make learning a new language fun and engaging.
It offers a gamified approach to learning over 100 different languages, making it accessible to people of all ages and backgrounds. Through its intuitive interface and bite-sized lessons, Duolingo has literally revolutionized the way people learn languages.
The Problem & the Solution
Language learning has traditionally been
- expensive,
- time-consuming, and
- often limited to formal educational settings.
Duolingo recognized these barriers and set out to democratize language education.
Their Learning Model
By offering a free, user-friendly platform that combines gamification with scientifically-designed lessons
Duolingo also offers a variety of features that help users stay motivated, such as streaks, leaderboards, and rewards.
You make points, move up in the board, and save yourself from getting eliminated, otherwise start again in that league!
According to Duolingo’s study, learners who complete five “Units” of Duolingo learn as much as students taking four university semesters of language education — and they do so in half the time.
Their state-of-the-art guilt marketing technique also played a huge role in making it a success! We’ll discuss this down the road
Duolingo made language learning accessible to anyone with a smartphone or computer.
Now,
The Result 🏆
It is a fact that over 1 Million+ people have more than 365 days streak in Duolingo!!
It has more than 14.2 Million Daily active users!!
and more than 54 million monthly active users!!
The app has been downloaded over 500 million times and is used by people in over 190 countries.
Duolingo has been praised by educators and users alike. In 2013, the app was named one of Time magazine’s “50 Best Inventions of the Year.”
Duolingo has also been recognized by the United Nations for its work in promoting literacy and education.
and, countless other awards!
Early Days
Duolingo was founded in 2011 by Luis von Ahn and Severin Hacker. Von Ahn is a computer scientist who is best known for creating CAPTCHA and reCAPTCHA, two technologies that help to digitize books and other documents.
Hacker is a software engineer who has worked on a variety of projects, including the Firefox web browser.
Luis despite his early success in his works, he kept doing what he liked.
Interestingly, they also had one of the lowest employee churn rates in the whole Industry
Because of one rule:
Boss vs Employee ❌
Boss with Employee ✅
They focused on creating a friendly & family environment instead of a political bureaucratic environment in most of the tech startups
Their Mission:
Duolingo’s mission is to “make education free, fun, and accessible to everyone.
Business Model
In 2021, Duolingo went public and is now a publicly traded company. The company is valued at over $2 billion.
Since then, Duolingo has experienced remarkable user growth, surpassing the 500 million user mark.
Their product is running on a freemium model and their business model is similar to Spotify and other dating apps
Use it for free but if you want better & more personalization, PAY
Despite growing users steeply on their platform, they are not profitable like every other tech startup nowadays
In 2022, they made $370 Million in revenue and burnt $435 Million in Expenses; hence making a loss of $60 Million
Revenue Growth:
They mainly earn through:
- Subscriptions: 6% of the total users of Duolingo have subscribed to PRO
- Advertisements
I think the way, they revolutionized the learning model, they should be Out-of-the-box for their earning model as well
Potential Income Sources:
1. Introducing Certificates for each level and these will be paid
2. Offering extra co-curricular exercises in the paid subscription
3. A private paid-only leaderboard with the TOP 5 getting some extra rewards like a Netflix subscription
Their USP
Duolingo’s USP is its gamified approach to language learning. The app uses a variety of features to make learning a new language fun and engaging, such as:
- Rewards: Users earn points and rewards for completing lessons and streaks.
- Leaderboards: Users can compete with friends and other users on leaderboards.
- Streaks: Users earn bonus points for completing lessons in a row.
These features help to keep users motivated and engaged, which is essential for long-term language learning success.
Duolingo’s unbelievable marketing Technique
Duolingo has used a variety of marketing tactics to reach its target audience. These tactics include:
- Unique Ads: Their ads spark a sense of fun & joy for learning, which is exactly displayed in their app interface.
2. Partnerships: Duolingo has partnered with a variety of organizations, such as the United Nations and the Khan Academy. These partnerships have helped Duolingo to reach a wider audience and promote its mission of making education free, fun, and accessible to everyone.
3. Engaging SM Marketing: Their aggressive & fun theme of social media posts makes users curious about Duolingo & its offerings leading to more downloads
Out-of-the-Box Thinking
Hiring Tactics
Duolingo’s commitment to innovation extends beyond its language learning platform.
The company takes an unconventional approach to hiring top executives. Before recruiting candidates for senior positions, Duolingo seeks feedback from its drivers, who drive the executives!
Collab with movies
For example, Duolingo partnered with the animated film “The Secret Life of Pets 2,” offering a special course based on the movie’s characters and storyline.
Such collaborations have helped Duolingo create unique and memorable experiences for users while expanding its user base.
What can we learn from Business POV
- Gamification can be a powerful tool for making learning more fun and engaging.
- User-centric design is essential for creating a product that people love to use.
- A relentless pursuit of accessibility can help you reach a wider audience.
- Innovation is key to staying ahead of the competition.
- Out-of-the-box thinking can lead to new and creative solutions.
Conclusion
Duolingo’s incredible rise to prominence can be attributed to its innovative approach, user-centric design, and relentless pursuit of accessibility.
By transforming language learning into an engaging and rewarding experience, Duolingo has managed to captivate millions worldwide. As the company continues to evolve and expand its offerings, it is poised to shape the future of language education, bringing the world closer together one lesson at a time.
