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API Monetization:
Unlock More Value from your APIs
Sarthak Ganguly, Apigee | Google Cloud
Harsh Chevuru, Apigee | Google Cloud
Meet the Speakers
Harsh Chevuru
Apigee | Google Cloud
Sarthak Ganguly
Apigee | Google Cloud
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“This year more CIOs will have their
bonuses tied to how many new
business models they help create with
existing and planned IT platforms than
ever before.”
Forbes, 2017
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What is Monetization?
● Is monetization just a
trend?
● Is monetization only
applicable for external
APIs?
● Is monetization relevant
to our business?
● Should monetization be
part of our business
strategy?
● How does monetization
impact scaling our API
programs?
5 Reasons to Monetize APIs
● Monetization is another growth strategy
● Frictionless way to sell data and services
● Additional revenue source
● Create a shared services platform
● Monetization as incentive scheme
API Monetization Strategies6
Monetization
Internal External
IndirectAPIs as Add OnRevenue ShareShared Services Direct
Monetization Strategies - External APIs7
Direct Monetization
Charge for API
Consumption
Industry Examples:
Google Maps
Weather
Flight Stats
Pitney Bowes
APIs as Add-ons
APIs usage as
an additional tier of
service
Industry Examples:
Salesforce
Shopify
Indirect Monetization
API usage is free,
but indirectly ties to
revenue generation
Industry Examples:
Uber
YouTube
Payments
Cloud Ecosystems
● Use APIs to create premium
packages
● No Direct way to monetize
● Think APIs as Products
APIs as Add-Ons
Industry Examples: Indirect Monetization
Consumption Models
Users Pay
Developers
Pay
Developers
Get Paid
Charging Models Explained
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Developer Pays: Users Pay: Developers Get Paid:
Maps
Travel
Data
ML
Weather Payment
Telecom
Ride
Services
Direct Charging Models13
Feature
SLA
Rate limit
Duration
Quantity
Hybrid
Tiered(API provider charges developer)
Freemium Models
Volume
Data depth
Pay as you go
Ala carte
Differential cost per API
Flat Fees(API provider charges developer)
Tiered Models
Multi Level
Sub Levels
Tiered
Two Broad levels, High vs. Low
Each category has a subcategory
Revenue / Volume Bands
Overage
Add-ons
Industry Examples:
Weather
What we learned from the Weather Industry:
● Most mature industry from a monetization
standpoint
● Heavily dependent on call volumes
● Wide range of bundles
○ Bundles catering to startups
○ Bundles better suited for large
enterprises
• Tiered
• Call Volume
• Trial - No Freemium
• Feature differentiator
• Overage Charge
• Tiered
• No Freemium
• Tiered
• Call Volume+
• Features+
• Add-ons
• Feature Differentiator
• Custom High Volume Plan
Latest Trends
Using Points or Credits as Currency
● Reduces complexity in multi-
currency scenarios
● Easy to make changes to
pricing structures
● Loose coupling to finance
processing
Value Based Models
Google Vision API Google Translation API
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Monetization as an Incentive Scheme
• Affiliate program
• $5 per new rider
• Max Pay $5k
• Official partner program to
earn more
• Affiliate program
• $7.5 per new rider
• Max Pay $7.5k
• Official partner program to
earn more
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Monetization
Data Services
Internal
Chargeback
Indirect
Monetization
Ancillary New
RevenuePrimary Business
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-Media
-Credit Services
-Research Services
-Airports
-Banks
-Fin Serv
-Healthcare
-Telco
-Telco
-Payment Services
-Credit Services
-Research Services
-Media
Proprietary and confidential
Are you…● Currently experimenting with
monetization models?
● Curious about how API
monetization can change your
business?
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Whether you are a trailblazer in
monetization or just getting started, we
can help.
Contact us to discuss how Apigee can
help you optimize your digital business.
Questions?
