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.

sarthakgy@google.com

harshchevuru@google.com

Questions?