They Were Failing… Until This One Simple Shift Made Them $88.5M
Published on March 17, 2025
Duolingo, a player in the ed-tech space offering language learning services, was stuck in a rut with their company’s revenues. They offered a free version of their product to compete against other players like Babbel, which used a subscription model to sell their products. Duolingo gave their product away for free, calling it “freemium” to differentiate themselves. But it wasn’t working.
So they went back to the drawing board and asked themselves: What is the number one issue people have when learning a new language? They realized that most people consider it a chore—as painful as getting a tooth pulled. So they innovated, turning to gamification. They made learning a new language fun, transforming Duolingo into a destination where users couldn’t wait to compete with others.
This strategy allowed Duolingo to continue giving their base program away for free while introducing a premium subscription that generated a very high conversion rate. The results? Massive growth through gamification. Today, they enjoy over 500 million users worldwide. Their customer retention has increased because their customers can’t wait to compete with other people. And financially, in 2024, Duolingo generated a net income of over $88.5 million—a whopping 451% increase compared to 2023.
The point is, if you, as a sales executive or company, keep trying to climb a new mountain and it isn’t working—try something different. In Duolingo’s case, they found the magic answer by focusing on how their customers feel when learning a new language. Remember, feelings drive people’s actions.
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