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