Duolingo showed the world how to scale language-centric gamification to the masses. It built a wildly recognisable brand, a delightful product hook and a huge user base. Yet the company struggles to turn scale into sustainable monetisation. The latest tweaks — notably the controversial “energy” mechanic highlighted by Android Authority — feel less like clever monetisation and more like the acceleration of a slippery slope: making the product worse in hopes people will pay for relief. Something that has worked for Google and Facebook in the short term because users have nowhere else to turn to, but may not work for them.
What happened — and why it matters for product leaders
Duolingo pioneered gamified micro‑learning and achieved mass adoption with a freemium model and ads. It later added paid tiers (Duolingo Plus / Super Duolingo) and advanced AI features such as Duolingo Max, but conversion from free users to paying customers has always been a challenge.
Introducing friction as a lever to force payments — for example by limiting attempts or gating core flows with an “energy” system — risks two things. First, it damages the product’s value proposition for the majority of users who will never pay. Second, it erodes trust: when a product appears to intentionally degrade the free experience, users feel manipulated. Android Authority’s coverage of the energy system captures that backlash well.
Three product truths that monetisation experiments often ignore
- Value creation precedes extraction. Users pay because you’ve created clear, sustained value. If the free product already delivers that value, the only reliable routes to monetisation are additive: premium features, superior outcomes, or enterprise and institutional channels.
- Perceived fairness matters more than marginal revenue. Short‑term lift from coercive mechanics can destroy lifetime value. Users don’t forgive feeling tricked — they churn, trash you in app store reviews and harm brand equity.
- Monetisation needs alignment with user jobs‑to‑be‑done. Language learners have different jobs: casual practice, exam prep, professional upskilling. A one‑size coercive mechanic addresses none effectively. Product leaders should map monetisation to distinct, high‑value jobs.
What Duolingo (and others) should consider instead
There are better, less destructive ways to turn scale into revenue. A few options product leaders should prioritise:
1. Expand premium value — not pain
Invest in premium features that genuinely improve outcomes: personalised study plans, verified certificates, tutor access, or cohort‑based courses for intensive learning. Coursera and Babbel show how clearly differentiated paid offerings can attract learners willing to pay for tangible skill gains.
2. Segment and price by use case
Not every user is equal. Identify high‑value segments — e.g., professionals needing business English, schools buying licences, or travellers wanting fast conversational skills — and design tailored products and price points for them. Enterprise and B2B channels often have much higher ARPU and more predictable retention.
3. Make measurement about outcomes, not vanity metrics
Move from DAU and streaks to metrics that reflect learning: retention of vocabulary, proficiency improvement, exam pass rates. If you can prove premium users learn faster or better, conversion becomes a rational decision rather than a behavioural trick.
Real‑world example: a different path to monetisation
Consider how professional B2B digital business generate revenue: they focus on measurable outcomes and institutional buyers. For example, LinkedIn Learning and Coursera monetise through enterprise licences, verified credentials and cohort experiences. They don’t punish the free user; they offer clear upgrades. That approach is slower to scale virally but produces healthier unit economics and stronger brand trust.
Three practical choices product leaders can make today
- Run experiments that add optional premium value rather than subtract from the free tier. A new feature should be additive by default.
- Map monetisation to user jobs and instrument learning outcomes. Use cohort studies and A/B tests focused on efficacy, not just short‑term revenue.
- Protect the core experience. Define non‑negotiables in your product manifesto — the behaviours and outcomes you will not degrade for short‑term gains.
These are not anti‑growth prescriptions. They are about sustainable growth: better ARPU, lower churn, and a brand that users trust.
Where this leaves us — and what to do next
Duolingo’s recent choices are a useful case study for every CPO, CTO and CEO wrestling with monetisation at scale. If your instinct is to tinker with friction and watch revenue climb, pause. There are better levers: differentiated premium value, enterprise channels, measurable learning outcomes and fair, transparent pricing.
Product teams should treat monetisation as a design problem rooted in user value, not a behavioural experiment in coercion. If you’re building a product that educates, convinces or cares for users, your long‑term licence to operate is credibility. Sacrifice that and you trade short‑term numbers for long‑term decline.
If you’re a product leader facing a similar dilemma, start by mapping your users’ jobs‑to‑be‑done and run an outcomes‑focused pilot for a premium feature. It may be less sexy than a quick revenue hack, but it’s the kind of work that builds lasting products — and healthy businesses.
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