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Monetization: Unlock More Value from Your APIs
The document discusses API monetization as a strategy for creating additional value and revenue streams for businesses. It outlines various monetization strategies, including direct and indirect models, and highlights industry examples to illustrate these concepts. Additionally, it encourages businesses to consider their current approach to monetization and how it can evolve to unlock further potential.
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Monetization: Unlock More Value from Your APIs
- 1. API Monetization: Unlock MoreValue from your APIs Sarthak Ganguly, Apigee | Google Cloud Harsh Chevuru, Apigee | Google Cloud
- 2. Meet the Speakers HarshChevuru Apigee | Google Cloud Sarthak Ganguly Apigee | Google Cloud 2
- 3. “This year moreCIOs 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 3
- 4. 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. 5 Reasons toMonetize 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
- 6. API Monetization Strategies 6 Monetization InternalExternal IndirectAPIs as Add OnRevenue ShareShared Services Direct
- 7. Monetization Strategies -External APIs 7 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
- 8. ● Use APIsto create premium packages ● No Direct way to monetize ● Think APIs as Products APIs as Add-Ons
- 9. Industry Examples: IndirectMonetization
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- 11. Users Pay Developers Pay Developers Get Paid ChargingModels Explained
- 12. 12 Developer Pays: UsersPay: Developers Get Paid: Maps Travel Data ML Weather Payment Telecom Ride Services
- 13. Direct Charging Models 13 Feature SLA Ratelimit 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)
- 14. Tiered Models Multi Level SubLevels Tiered Two Broad levels, High vs. Low Each category has a subcategory Revenue / Volume Bands Overage Add-ons
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- 16. What we learnedfrom 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
- 17. • Tiered • CallVolume • Trial - No Freemium • Feature differentiator • Overage Charge
- 18. • Tiered • NoFreemium
- 19. • Tiered • CallVolume+ • Features+ • Add-ons • Feature Differentiator • Custom High Volume Plan
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- 21. Using Points orCredits as Currency ● Reduces complexity in multi- currency scenarios ● Easy to make changes to pricing structures ● Loose coupling to finance processing
- 22. Value Based Models GoogleVision API Google Translation API 22
- 23. Monetization as anIncentive 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 23
- 24. Monetization Data Services Internal Chargeback Indirect Monetization Ancillary New Revenue PrimaryBusiness 24 -Media -Credit Services -Research Services -Airports -Banks -Fin Serv -Healthcare -Telco -Telco -Payment Services -Credit Services -Research Services -Media
- 25. Proprietary and confidential Areyou… ● Currently experimenting with monetization models? ● Curious about how API monetization can change your business? 25
- 26. 26 Whether you area trailblazer in monetization or just getting started, we can help. Contact us to discuss how Apigee can help you optimize your digital business. sarthakgy@google.com harshchevuru@google.com
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