[Market Trends] How Duolingo Rakes in $500M Yearly When 80% of Its Users Don’t Pay | The Wall Street Journal
📌 Mastering Monetization: Duolingo's Strategic Blend of Freemium and Engagement
Duolingo, a leading language learning app, earns $500 million annually, largely from only 9% of its users who opt for paid subscriptions, with minimal revenue from advertising. Despite most lessons being free, the company’s gamified approach, complete with progress bars, experience points, and daily streaks, keeps users engaged. Duolingo introduced advertising and a premium tier in 2017 to generate revenue. It employs AI, A/B testing, and data-driven strategies to optimize user experience and retention. During the pandemic, its popularity surged, further distinguishing it from competitors. Duolingo's meticulous user engagement strategies ensure steady growth and substantial revenue despite its freemium model.