How I Built This with Guy Raz: Advice Line with Luis von Ahn of Duolingo

Released May 1, 2025

In this enlightening episode of How I Built This with Guy Raz, host Guy Raz reunites with Luis von Ahn, the co-founder and CEO of Duolingo. Building upon their previous conversation from 2020, Raz and von Ahn delve deep into the exponential growth of Duolingo, the challenges of scaling a rapidly expanding company, and address real-world business dilemmas from aspiring entrepreneurs. This episode is a treasure trove of insights on leadership, innovation, and strategic decision-making.

Catching Up with Luis von Ahn

From Startup to $13 Billion Valuation

Luis von Ahn reflects on Duolingo's remarkable journey since their last appearance on the show. What was once a startup valued at approximately $1 billion has now surged to a market capitalization of around $13 billion. Maintaining its headquarters in Pittsburgh, Duolingo has expanded to 900 employees, marking significant milestones including its successful IPO in 2021.

Evolving Leadership in a Public Company

As Duolingo transitioned to a publicly traded company, von Ahn discusses the ensuing changes in his leadership approach. He shares, “[05:08] Luis von Ahn: ... being a publicly traded company forces you to make sure that all your processes are very well structured.” This new transparency necessitated more precise forecasting and disciplined operational practices, akin to maintaining a pristine home under constant scrutiny.

Navigating Competition and User Behavior

Focusing Amidst Growing Competition

Guy Raz inquires about Duolingo’s strategy in a competitive landscape, particularly with the advent of AI-driven language learning tools. Von Ahn responds by emphasizing Duolingo’s dominant market position, stating, “[07:12] Luis von Ahn: ... 90% of people who are learning languages on mobile apps are using Duolingo.” He highlights that while direct competitors in language learning are minimal, the real competition comes from platforms like Instagram and TikTok, which vie for users' time and attention.

Understanding User Actions vs. Words

A pivotal discussion centers on the discrepancy between what users say they want and their actual behavior. Von Ahn shares a compelling observation: users express a desire for live human interaction in language learning but rarely act on it. “[08:11] Luis von Ahn: ... asking them if they would pay for live interaction, they say yes, but when pressed, they aren’t willing to engage immediately.” This underscores the importance of data-driven decision-making over relying solely on market research.

Advice Line: Real Business Challenges Addressed

The episode features an interactive segment where real entrepreneurs call in to seek advice from Guy Raz and Luis von Ahn. Two notable callers, Steph Crim and Blair Haste, present their unique business challenges.

Caller 1: Steph Crim of Good Things Vending

Business Overview

Steph Crim introduces Good Things Vending, a Chicago-based venture that refurbishes full-size snack vending machines, customizing them with local artwork and stocking them with unique, nostalgia-infused items. These aren’t your typical vending machines; they offer curated, one-of-a-kind products, transforming mundane spaces into vibrant community hubs.

Challenge: Scaling Sustainably Amidst High Demand

Steph outlines her dilemma: “[12:29] Steph Crim: ... opportunities that exceed our current capacity. How do we decide when to say yes and scale?” She faces the classic startup conundrum of rapid growth versus sustainable expansion.

Advice and Solutions

Luis von Ahn advises leveraging the crowd’s willingness to invest in premium placements: “[17:12] Luis von Ahn: ... consider asking for a fee like $1,000 to locate your machines, creating a sense of scarcity and prestige.” This approach not only funds further growth but also filters committed partners who genuinely value Good Things Vending’s presence.

Guy Raz supplements this by suggesting collaboration with business schools to find dedicated individuals who can manage expansions effectively, ensuring that growth is both manageable and strategic.

Caller 2: Blair Haste of Behr

Business Overview

Blair Haste presents Behr, a design-driven brand specializing in high-end tech accessories for Apple products. With a focus on premium materials like merino wool, felt, and fine leather, Behr aims to offer minimalist and durable accessories that stand out in a crowded market.

Challenge: Product Focus and Market Validation

Blair explains, “[30:50] Blair Haste: ... Tame was meant to launch alongside Tote, but Tote hasn’t taken off as expected. How do I decide which product to prioritize with limited resources?”

Advice and Solutions

Von Ahn cautions against investing in nascent platforms, drawing from Duolingo’s own experiences: “[31:39] Luis von Ahn: ... make products for established platforms.” He emphasizes the importance of focusing on proven markets to ensure product viability.

Guy Raz echoes the sentiment, advocating for local market penetration and leveraging unique materials as differentiators. He proposes targeting influential communities who can act as brand ambassadors, thereby organically driving demand and establishing a strong market presence.

Strategic Insights and Lessons Learned

Throughout the episode, several key themes emerge that are invaluable for entrepreneurs navigating growth and competition:

1. Monetization is Crucial: Von Ahn reflects on Duolingo’s delayed monetization strategy, advising, “[50:10] Luis von Ahn: ... monetize a little sooner because it allows you to fulfill your mission more effectively.”

2. Leverage Strengths and Delegate Weaknesses: Recognizing personal limitations, von Ahn shares his strategy of hiring experts to handle areas outside his expertise, ensuring the company operates efficiently and effectively.

3. Premium Pricing for Unique Value: Both callers are encouraged to reassess their pricing strategies. By positioning their products as high-end and unique, they can command higher prices, improve profit margins, and sustain growth without overextending resources.

4. Community and Brand Alignment: Success often hinges on aligning with the right communities. Whether it’s local artists for Good Things Vending or creative influencers for Behr, connecting with communities that resonate with the brand’s values amplifies reach and fosters loyalty.

5. Adaptability and Data-Driven Decisions: Emphasizing the importance of observing user behavior over stated preferences, Duolingo’s approach underscores the necessity of being adaptable and leveraging data to inform strategic decisions.

Concluding Remarks

The episode wraps up with a profound moment from Luis von Ahn’s original interview, where he recounts a pivotal challenge: “[51:33] Luis von Ahn: ... nobody else will invest in this company. If you don't figure out how to make money, you know you're not going to find a bigger fool.” This realization propelled Duolingo to prioritize monetization, steering the company toward sustainable growth and eventual success.

Guy Raz encourages listeners to revisit Luis's earlier episode for a more comprehensive understanding of his entrepreneurial journey. He also invites aspiring entrepreneurs to join the conversation by submitting their business challenges, continuing the legacy of shared knowledge and community support that defines How I Built This.

Notable Quotes:

• “[05:08] Luis von Ahn: ... being a publicly traded company forces you to make sure that all your processes are very well structured.”

• “[07:12] Luis von Ahn: ... 90% of people who are learning languages on mobile apps are using Duolingo.”

• “[08:11] Luis von Ahn: ... asking them if they would pay for live interaction, they say yes, but when pressed, they aren’t willing to engage immediately.”

• “[12:29] Steph Crim: ... opportunities that exceed our current capacity. How do we decide when to say yes and scale?”

• “[43:16] Luis von Ahn: ... if you can charge more, you should just do that because that will solve most of your problems.”

• “[50:10] Luis von Ahn: ... monetize a little sooner because it allows you to fulfill your mission more effectively.”

This episode serves as a masterclass for entrepreneurs, blending personal anecdotes with actionable strategies. Luis von Ahn’s experiences, paired with Guy Raz’s insightful questioning, offer a roadmap for navigating the complexities of scaling a business while maintaining core values and mission.