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ROSETTA STONE TOTALE PRICE SOFTWARE

Rosetta Stone’s TOTALe platform offers the ability to meet with a live teacher in a group class, only after you’ve progressed past a certain point in their software (long after most users have given up). Learn from a native, that’s a pretty simple concept. We’ve interviewed hundreds of language learners, from middle-aged parents to college students and corporate employees alike, and have listened closely to the one consistent, resounding piece of feedback: “I want to learn from a native”. 5) LiveMocha doesn’t meet the single biggest need identified by today’s paying language learners Even more likely is that they’ll just drop the dream altogether rather than “wasting their time and money.” I put this in quotes because I talk to these people every single day… which leads us to our last and most important point. So what ends up happening? It’s likely the buyer will just take up a class at the local community college, or meet with a low-cost tutor at a coffee shop. As Tim Ferriss points out, native English speakers suck at teaching English it’s merely second nature to them.

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The problem is these natives aren’t teachers so they won’t have the patience or skill to teach you how to speak their language.

LiveMocha doesn’t bring a lot of credibility beyond being an easy way to connect with other native speakers (and not infuriating people with their price tag). 4) LiveMocha doesn’t provide the missing piece that will make Rosetta Stone’s product more effective As more informed buyers slide increasingly into Rosetta Stone’s demographic “strike zone” (affluent 30-50 year olds), the company’s ability to execute the sale at the buyer’s point of least resistance will crumble. Today’s buyer only needs to type “rosetta stone review” in Google and watch the red flags flood their screen.

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Users can easily be informed not only of Rosetta Stone’s shortcomings but also of the countless lower cost and/or free competitors. 3) Rosetta Stone needs credibility in the online community However, rumblings in the online community indicate that these users won’t stick around for what RST has to offer. A former president at Rosetta Stone told me this week that the deal doesn’t compromise RST’s two biggest strengths, their breadth of languages (34 total) and brand awareness, yet brings them an active community of language learners that are integrally linked to social media. RST has been running in the red over the last few years. But I’m not sure that RST shareholders should attribute much upside to this.” Getting half your money back in those circumstances is not a bad outcome. They made a bet on the executive team and on a thesis that didn’t bear fruit.

Former LiveMocha product and marketing executive Clint Schmidt gave me an interesting perspective from the lens of venture capital, telling me this is a “good deal for LiveMocha investors. Unfortunately, neither strategy is moving the needle: privately-held LiveMocha sold to Rosetta Stone for about half of what they raised in capital over their 5 years of existence. All this despite what people have to say about their product (more on that next).

They’ve also excelled at landing governmental contracts and institutional sales. The company spends well over $100 million per year “selling the dream” and maximizing on the buyer’s point of least resistance, a concept LiveMocha never seemed to grasp. Rosetta Stone puts a large price stamp (~$300) on their shiny yellow boxes of CD-ROM’s (yes you are reading this thirteen years into the 21st century). The problem was simple: they gave too much away for free. LiveMocha provides a freemium model which allows users to connect with other native learners in the hopes they can upsell them on the site’s premium materials (at ~$99). 2) Rosetta Stone and LiveMocha have entirely different users, pricing and acquisition channels Competitive language learning apps have nailed design and usability for a fraction of the cost, including Duolingo, a free app that is enjoying rave reviews and even beating Rosetta Stone at their own game. There are 5 reasons why you should be skeptical this acquisition will save Rosetta Stone, which has been running in the red for the last few years. Hours after April Fool’s day, LiveMocha CEO Michael Schutzler announced that his company was being acquired by the behemoth he had battled for five years: Rosetta Stone.

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