The document outlines five models for API monetization, including charging directly for API access, using it as an upsell opportunity, driving revenue through API-enabled applications, leveraging strategic partnerships, and improving operational efficiency. Each model presents specific strategies for measuring success, such as tracking revenue per user and assessing the impact of API features on sales. The insights aim to help businesses optimize their API programs to achieve their goals.

1. The Five API Monetization Models
Rob Zazueta
Global Director Digital Strategy
TIBCO
@rzazueta

2. The success of an
API program is measured
by how well it moves a
business toward its goals.

4. © Copyright 2000-2016 TIBCO Software Inc. 4
API Business Models by Company
Source: API Business Models by John Musser: http://www.slideshare.net/jmusser/j-musser-apibizmodels2013

5. © Copyright 2000-2016 TIBCO Software Inc.
1. Charge Directly for Your API
2. Use API Access as an Upsell Opportunity
3. Drive Revenue-Generating Activities Through Your API
4. Generate Revenue and Increase Distribution Through
Strategic Partner Integrations
5. Improve Operational Efficiency and Decrease Time to
Market for Internal Teams
5
The Five Models For API Monetization

6. 1. Charge Directly For
Your API – Either By Call
Volume or Subscription

9. ARPU =
Measure the Average Revenue Per API User
Total Revenue
------------------
Number of
Users

10. 2. Use API Access As An
Upsell Opportunity

12. • Compare sales of packages including the API against sales of
other packages without the API.
• Ensure the sales person marks the customer’s level of
interest in the API at the time of sale.
• Measure the number of calls made by API enabled packages
to determine whether it’s a factor in the sale of that package.
• Measure ARPU of active API customers against non-active
API customers.
How to Measure Success

13. 3. Drive Revenue-
Generating Activities
Through Your API

15. • Properly attribute revenue generating
activities to the apps that drove them using
API keys.
• Follow the complete chain of application
usage – many apps may lead to a single
revenue recognition.
• Not all calls directly lead to revenue –
measure ARPU against API usage.
How to Measure Success

16. 4. Generate Revenue and
Increase Distribution
Through Strategic
Partners / Affiliates

18. • Carefully plan with your partners how success will be
measured.
• For affiliates – pay only for directly-related revenue
generating activities.
• Measure new customers brought in through partners /
affiliates.
• Measure the ARPU of new customers brought in
through partners / affiliates vs. ARPU of other
customers and total ARPU.
How to Measure Success

19. 5. Improve Operational
Efficiency and Decrease
Time to Market For
Internal Projects

20. • “Comcast went from about four
weeks’ lead time to just a few
hours to onboard partners.”
- Hai Thai
Senior Engineer, Comcast

21. • Review old project plans – measure average time from
inception to completion.
• Review existing provisioning processes. Measure the
amount of employee time and actual time taken to
completion.
• Seek new ways to decrease these numbers not only
through APIs, but through other efficient processes.
How to Measure Success

22. Flickr Image “Lego Bricks” by Benjamin Esham

23. Thank You!
Rob Zazueta
@rzazueta