Download - The 5 API Monetization Models and How to Measure Their Success

Intel Confidential — Do Not Forward

The Five API Monetization ModelsRob ZazuetaDirector, Platform StrategyIntel Services – Mashery

@rzazueta

The success of an API program is measured by how well it moves a

business toward its goals.

1. Charge Directly For Your API – Either By Call

Volume or Subscription

ARPU =

Measure the Average Revenue Per API User

Total Revenue-----------------------

-Number of

Users

2. Use API Access As An Upsell Opportunity

• 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

3. Drive Revenue-Generating Activities

Through Your API

• 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.


4. Generate Revenue and Increase Distribution

Through Strategic Partners / Affiliates

• 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.


5. Improve Operational Efficiency and Decrease

Time to Market For Internal Projects

“Comcast went from about four weeks’ lead time to just a few hours to onboard partners.”

- Hai ThaiSenior Engineer, Comcast

• 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.


Flickr Image “Lego Bricks” by Benjamin Esham

Intel Confidential — Do Not Forward

Thank You!Rob Zazueta@rzazueta

http://apistrategy.tumblr.comhttp://www.mashery.com/blog