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What's a good API business model? If you have an API, or you plan to have an open API, or just want to use APIs in your web or mobile app, what models make sense? See 20 different API business models. This comprehensive survey of the gamut of today's options covering anything from paid to getting paid to indirect.
What's a good API business model? If you have an API, or you plan to have an open API, or just want to use APIs in your web or mobile app, what models make sense? See 20 different API business models. This comprehensive survey of the gamut of today's options covering anything from paid to getting paid to indirect.
Why API? Many reasons… Drive
innovation BizDev / LeadGen Marketing channel User acquisition New line of business Upsell opportunity API as Product Increase footprint Device and mobile support Distribution channel Partner opportunities Content acquisition Drive traffic Increase stickiness Accelerate internal projects Extend product
ET #1 I SECR A
P An API strategy is not an API business model
APIs, now a billion $
business = $2 billion/year Affiliate Network “90% of what we do is business through APIs” John Wa9on, Expedia Affiliate Network, TravoluGon.co.uk, April 2012
Recurring Revenue Share • 3%
of $9.99/month per “Unlimited” subscriber • 2% of $4.99/month per “Rdio Web” subscriber Affiliate Program • 7% of purchase price for each MP3 purchased Recurring revenue every month for as long as a subscriber recruited by you remains an Rdio subscriber
ET #3 I SECR A
P You need to bake your business model into your API
Content Acquisition 3rd party applicaOons
built on 60% of all tweets came from the [eBay] Open PlaTorm 3rd party clients [2010] accounOng for $6.9 billion in Gross Merchandise Volume (GMV) in 2008. Kumar Kandaswamy, May 31, 2012 Ryan Sarver, Chirp Conference, April 4, 2010
APIs, the glue of SaaS
200 SaaS companies with API success stories: “We find that if our customers use any single integraOon, they are three Omes as likely to convert to paid.” Sunir Shah, FreshBooks Blog, Aug 25, 2010
ET #4 I SECR A
P API business models are not 1 size fits all
NPR: Internal use = API
growth NPR Music Facebook Integration iPhone app NPR iPad app Relaunched NPR mobile site Player 2.0 NPR News Android app NPR Music Homepage NPR Blogs Remix Improvements Made API Friendly Story Page Improvements Source NPR. Shown in millions via Ominture. Last updated September 23, 2010.