UNIT ECONOMICS & USER BEHAVIOR
Customer Acquisition Cost (CAC)
Industry Benchmarks: - Duolingo (Freemium): $5-$10 per user
- Babbel/Rosetta Stone (Subscription): $100-$250 per user
- B2B EdTech: $500-$1,500 per client
Fluent’s Projected CAC:
- Freemium Users: $10-$25 (competitive with Duolingo)
- Premium Users: $75-$200 (competitive with Babbel/Rosetta Stone)
- B2B Enterprise Clients: $500-$2,000
Lifetime Value (LTV)
Industry Benchmarks: - Duolingo: $40-$100 per paying user
- Babbel/Rosetta Stone: $250-$1,000 per user
- B2B Corporate Training: $5,000-$50,000 per contract
Fluent’s Projected LTV:
- B2C Users: $360-$1,000+ (Subscription + Microservices)
- B2B Clients: $10,000-$50,000+
User Behavior & Market Trends
Trends: - Users are 70% Millennials & Gen Z, with growing interest from 45+ age groups.
- 50% of users are learning for career growth, 30% for travel, 20% for personal interest.
User Engagement Challenges:
- Most users drop off early—Duolingo: <1% complete a course, 1-2% reach advanced levels
- Paid models (Babbel, Rosetta Stone) have higher completion rates (~5%)
Market Growth:
- 1B+ language learners globally for 2025