Thinking about an easy way to monetize your API but worried about the investing it would require? Let us ease your mind! In this article, you will find info you surely are interested in.
The introduction and expansion of APIs open up new business opportunities. Through APIs, developers and companies can offer services to customers or even internally within the company, so that, charging in different ways for their use, they can obtain revenue from them.
For these monetization initiatives to be successful, application leaders responsible for application strategy and governance must identify who the target consumers of their business are. Maybe use an API Management tool that allows monetization to be implemented in a flexible way. Define in detail the different monetization methods to be implemented for the different business cases identified.
API Monetization options
There are many different ways to achieve this monetization and they must be designed according to who is going to be the consumer of the APIs and the business that can be obtained through them. The most standard methods used are as follows:
- Free: Free use of the APIs, it is only necessary to authorize the consumer.
- Freemium: Free usage up to a certain level of usage. Once this free level is reached, the consumer must pay for the usage. You can even include different levels or layers of usage.
- Subscription: Customers subscribe to a predefined level of monthly API usage, with alerts and surcharges if the subscription limit is exceeded.
- Pay per use: Pricing is based directly on usage, on the number of API calls, or per MB of data consumed.
Although API monetization by companies is not very widespread today, it is true that the vast majority are beginning to adapt their systems and implement their API Management systems in preparation for being able to market their APIs on a usage basis.
Now, this is just a basic overview of what is involved in API monetization, specifically talking about charging options. All this involves a sales process, attracting customers, and attending to their doubts and queries. After the acquisition of the API by the customer it is necessary to follow up on the problems or updates related to the use of the API and we could continue listing an endless number of topics involved.
To streamline this work and speed up the burden on the developer there are so-called API marketplaces.
An API marketplace works in the same way as these other online marketplaces. That is, it allows API suppliers to list their services and developers to consume them. A typical API marketplace, like other types of markets, has many components. A developer portal and an API provider site are included.
In terms of platform dependability, we strongly recommend Zyla API Hub.
About Zyla API Hub
The Zyla API Hub positions itself as a user-friendly, intuitive, and dynamic public hub where API developers can submit their work for consumption by users and clients.
This platform also contains marketing strategies for publicizing your API. For example, after your products are published on Amazon, the only reason someone will buy them is because they found them. This method, on the other hand, is exceptional in the manner it promotes your products to ensure that more people have access to them.
Furthermore, Zyla API Hub offers an assistant who will oversee each stage of the process and ensure the successful sale of your API. And, no, you will not be charged an additional fee for this.
Also published on Medium.