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The Art of Selling API - I Edition

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An overview of the API Market and all the business models applicable to monetize an API. The API TAM is growing fast and nowadays selling your API must be your new business model.

An overview of the API Market and all the business models applicable to monetize an API. The API TAM is growing fast and nowadays selling your API must be your new business model.

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  • 1. Feb 2013The Art of Selling APIs I edition Augusto Marietti Co-founder/CEO of Mashape The Cloud API Hub
  • 2. # of Developers in the world +25 MillionWith a lot of decision power and money Source: Joel Spolsky, StackOverflow - Startup School 2012
  • 3. APIs: The Growth is accelerating Source: ProgrammableWeb
  • 4. APIs: The Growth is accelerating Source: ProgrammableWeb
  • 5. APIs In Every Sector Software and Hardware
  • 6. It’s a Source of RevenueAPI =“cloud”
  • 7. Charge per “Object” SMS API Call Data Point Query Status ClassifiedWord Processed MB Face Detected Etc.
  • 8. 3 New Positions API Engineer API Evangelist API Business DevelopmentA few years ago, these positions didn’t exist.
  • 9. EmploymentToday, thousands of employees work in the API Market. AWS has 600 open positions
  • 10. If Software is the recipe; APIs are the ingredients.
  • 11. Who Started this?2001NOW! +60% of all listings on eBay added via their APIs
  • 12. First well-known API Startup (2008)
  • 13. API Business Models20052013 *Designed by John Musser, founder of ProgrammableWeb
  • 14. Today Landscape Credits: John Musser
  • 15. FreeFacebook API is free, but it takes a cut of in- app payments (Farmville Coins). Credits: John Musser
  • 16. Developers PayDevelopers pay directly to the API provider Credits: John Musser
  • 17. Developers get paidDevelopers get paid by the API provider Credits: John Musser
  • 18. Indirect ModelEbay APIs support sellers with create listings, leave feedbacks, etc Credits: John Musser
  • 19. Multiple Plans
  • 20. Multiple Plans ns Pla lti pl eMu m its Li res atuFe
  • 21. Pay as you go go ou sy ya Pa
  • 22. API is THE Product (2006)
  • 23. API is THE Product (2013)
  • 24. Example: API to Accept PaymentsProcessing +$5 Billion/year (2.9% + 30 cents per transaction)
  • 25. Product APIs: Overall Revenue2007: <$100M
  • 26. Product APIs: Overall Revenue2012: +$3 Billion (AWS generated ~$1.5B)*AWS market value could be close to $20B In a new research, Macquarie Capital contends that Amazon Web Services is not only profitable, it would be a $19 billion business if it were counted as a standalone entity.
  • 27. API as an Extension of the Product
  • 28. Example: Expedia API $2 Billion/year“90% of what we do is business through APIs” John Watton, Expedia Affiliate Network, April 2012 Credits: John Musser
  • 29. Extension APIs: Overall Revenue 2007: <$100M 2013: Billions
  • 30. So, APIs Potential is Huge. Already. Direct + Indirect +$10 Billion /Year (2013) API Revenue generated by: Expedia, Salesforce, Facebook, Ebay, Amazon, etc.
  • 31. One more thing... ^__^Plus, the broader market of Tools for APIs
  • 32. Remember 2013Your API is your Business Model
  • 33. Thanks!Q&A Time support@mashape.comYou should follow me here: @sinzone