One must have unquestionably come across an app icon representing a plump green owl while scrolling through the best apps list on playstore/ AppStore. This icon represents a very popular app named Duolingo.
What is Duolingo?
Duolingo is an American language learning mobile app and website that works on a freemium model. It keeps the users hooked on by gamifying its various courses.
Duolingo offers the following:
i. 38 languages with 106 language lessons
ii. A flashcard drives the learning system
iii. Learning platform for school students, i.e., Duolingo for school
iv. Duolingo English proficiency test
v. Duolingo podcasts
It has over 500 million registered user-base, and to make the platform even more unique, it has also added fictional languages like High Valyrian and Klingon, which has garnered much enthusiasm.
Main Features
- Organized, Progressive Lessons provide a more explicit route toward improved language skills, and new levels open up as one’s language skills progress.
- It is similar to the structure of video games to keep its users engaged. It has a reward-based system in which users get gems, which is an in-game currency, and the same can be spent on various in-built features like character customizations or unlocking bonus levels.
- People can also compete with their friends or other people globally and see their positioning based on their learning.
- It combines various methodologies like matching images to words, listening to the pronunciation, and forming phrases by ordering words, reading sentences, and recording voice.
What led to the birth of Duolingo?
Luis Von Ahn (who is known for his work in CAPTCHA and Re-CAPTCHA) and his student Severin Hacker were the founders of Duolingo. Duolingo was based on a similar concept to Re-CAPTCHA. Re-CAPTCHA is a major crowdsourcing information program where the system takes information from users to verify if they are human.
On a similar basis, Duolingo takes the help of a human for translating a document from one language to another. Despite translation tools being there in the market, they are not capable of precisely translating the same.
And this led to the rise of the Duolingo business model. As the app is free and the entire learning experience is gamified, hooked users learn a new language. However, on the bank end, the application provides text that needs to be translated, and some other website uses this translated text by users for its translation. When a defined number of users give a similar translation for a particular sentence, the website considers that as the legitimate translation and saves that as the translated text.
How Does It Make Money?
Duolingo initially generated revenue with the help of crowdsourced translation, which translated text in an effective and cost-efficient way compared to a professional translator. This initial process was for its client base having content-heavy websites like CNN, BuzzFeed, and more, as these websites wanted their content to be translated.
However, recently it has moved to make money via a premium subscription, display ads, as well as its language proficiency tests. The platform is built on a freemium model where users can use its core features without any subscription cost. If the users want to use advanced features or receive an ad-free experience, they can opt for a subscription or purchase the specific elements.
Details of various revenue stream are as follows:
Duolingo Plus:
Duolingo Plus is a premium subscription that offers the following benefits:
- An ad-free experience
- Ability to download lessons and access them offline
- Unlimited hearts and skill tests
- A monthly streak repair
- Access to a progress quiz
Advertising:
Users who have not opted for the subscription model see ads from various advertisers associated with the platform. Duolingo gets paid for every impression, i.e., gets paid for every ad that pops up on the user screen.
Language Tests:
Duolingo launched language proficiency tests and was a significant competition to institutions like TOFEL, which have had a quasi-monopoly on the language testing market. It launched an online test to measure a student’s proficiency in English, and students will receive a certificate of accomplishment after successful completion, which various universities recognized.
Duolingo School
also offers Duolingo for schools, which provides educators and students different accounts to track and train in new languages.
Even though Duolingo has had its share of criticisms in the past for failing to prepare one in full-fledged conversations or lack of quality for some languages, it has captured the space in translation and language education and get a market share much bigger than the existing competitors. It made learning a new language accessible to everyone at absolutely no cost and has garnered a valuation of more than $2.4 billion.
This post was written in collaboration with Asif Yahiya Sukri LLP. Asif Yahiya Sukri LLP provides unparalleled personalized financial services to a broad range of clients across different geographical locations. With a presence in the USA, India and the MENA region, they ensure that all of your financial decisions are made carefully and with your best interests in mind. They are innovators who understand what goes into building companies.
You can also reach out to them on info@aysasia.com
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