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Duolingo focused on continuously improving their product by iterating on features and conducting A/B tests. This culture of iteration and continuous improvement, along with being in the right place at the right time with mobile, played a crucial role in Duolingo's success.
Duolingo's primary focus for the first five years was increasing user retention and engagement without monetization. They prioritized making the product stickier and ensuring high user engagement, which ultimately led to their tremendous growth and market expansion.
Duolingo initially started by making changes to the app without knowing if they were effective. Their early experiments with A/B testing revealed that their own assumptions and predictions about what would work were often incorrect. As a result, they built a culture of A/B testing, where every change to the app is tested and evaluated for its impact on metrics and user experience.
Duolingo adopted a scrappy approach to marketing, leveraging platforms like TikTok, YouTube, and other social channels. They embraced the development of a unique owl mascot and created humorous and engaging content that resonated with their audience. This approach resulted in viral moments and increased brand awareness without relying on traditional advertising channels.
The speaker discusses how the company built consensus around the decision to monetize their product and the challenge of getting employees on board. The speaker emphasizes the importance of individual conversations to address concerns and convince employees of the financial benefits of making money. This approach eventually led to increased revenue, growth in the number of employees, and improved product development pipelines.
The speaker talks about the decision-making process for balancing subscription and advertising revenue. Initially, the company implemented an ad-supported free version with only one ad at the end, ensuring that the free user experience was not degraded further. Over time, it became clear that the subscription model was far more profitable, with about 8% of monthly active users being paid subscribers and 80% of revenue coming from subscriptions. The company's philosophy is not to charge for content but only for features that incur costs.
The speaker discusses the company's expansion into other subjects like math and music. They highlight the challenge of creating an effective learning experience for these subjects, particularly graphically-oriented content in math. The speaker expresses the desire to reach a broader audience, similar to the success they achieved in language learning. However, they acknowledge the uncertainty in capturing the interest of older learners and making math as engaging as other subjects. The company's competition is identified as the competing apps and platforms that capture users' time, emphasizing the need to create engaging experiences comparable to popular entertainment apps like TikTok and Instagram.
Luis von Ahn is the CEO and Co-Founder of Duolingo, the world’s #1 language learning application. In the episode, Luis shares the marketing formula they use to drive rapid user growth, including the backstory of Duolingo’s famous owl mascot that has become a viral internet sensation. Luis also dives into the A/B testing and product gamification experiments that have helped make Duolingo a $9B public company, as well as a handful of valuable lessons from his entrepreneurial journey.
(0:00) Intro
(0:54) Building a Culture of Iteration and Continuous Improvement
(2:29) The Importance of User Retention in Duolingo's Growth
(3:24) The Power of A/B Testing in Product Development
(7:57) Balancing User Feedback and Data in Product Design
(10:24) The Role of Marketing in Duolingo's Growth
(15:54) The Importance of Setting Constraints in Product Development
(18:35) The Role of Metrics in Decision Making
(24:02) The Power of Viral Marketing and Memes in Brand Building
(30:44) The Impact of Social Media Marketing on User Acquisition
(35:41) The Impact of Passive Aggressive Notifications
(37:42) Dealing with Controversial Content and Backlash
(42:40) The Importance of Being Scrappy in Marketing
(45:13) The Challenges of Teaching Languages
(49:25) The Importance of User Retention in Duolingo
(51:14) The Journey to Monetizing Duolingo
(56:40) The Challenges of Introducing Monetization in Duolingo
(1:04:16) The Expansion of Duolingo Beyond Languages
(1:09:13) Growing User Base and Utilizing AI
(1:11:16) Impact of Going Public on Duolingo's Operations
(1:16:00) The Importance of Employee Selection in Duolingo
(1:22:42) The entrepreneurial journey
(1:33:46) Improving the Education System
(1:37:21) The honeypot website to catch cheating students
Produced: Rashad Assir & Leah Clapper
Mixed and edited: Justin Hrabovsky
Executive Producer: Josh Machiz
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Apple Podcasts: https://podcasts.apple.com/us/podcast/the-logan-bartlett-show/id1606770839
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About the Show
Logan Bartlett is a Software Investor at Redpoint Ventures - a Silicon Valley-based VC with $6B AUM and investments in Snowflake, DraftKings, Twilio, and Netflix. In each episode, Logan goes behind the scenes with world-class entrepreneurs and investors. If you're interested in the real inside baseball of tech, entrepreneurship, and start-up investing, tune in every Friday for new episodes.
Executive Producer: Rashad Assir
Producer: Leah Clapper
Mixing and editing: Justin Hrabovsky
Check out Unsupervised Learning, Redpoint's AI Podcast: https://www.youtube.com/@UCUl-s_Vp-Kkk_XVyDylNwLA
🎙 Listen to the show
Apple Podcasts: https://podcasts.apple.com/us/podcast/the-logan-bartlett-show/id1606770839
Spotify: https://open.spotify.com/show/5WqBqDb4br3LlyVrdqOYYb?si=3076e6c1b5c94d63&nd=1
Google Podcasts: https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5zaW1wbGVjYXN0LmNvbS9zb0hJZkhWbg
🎥 Subscribe on YouTube: https://www.youtube.com/channel/UCugS0jD5IAdoqzjaNYzns7w?sub_confirmation=1
Follow on Socials
📸 Instagram - https://www.instagram.com/theloganbartlettshow
🐦 Twitter - https://twitter.com/loganbartshow
🎬 Clips on TikTok - https://www.tiktok.com/@theloganbartlettshow
About the Show
Logan Bartlett is a Software Investor at Redpoint Ventures - a Silicon Valley-based VC with $6B AUM and investments in Snowflake, DraftKings, Twilio, and Netflix. In each episode, Logan goes behind the scenes with world-class entrepreneurs and investors. If you're interested in the real inside baseball of tech, entrepreneurship, and start-up investing, tune in every Friday for new episodes.
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