How To Pair Your API With The Right Monetization Strategy

API managers who have developed an API now face the problem of figuring out a revenue generation model that makes sense to their company’s initiatives. Though there are many API business models out there, a way to group them is with 3 basic strategies; inclusion, independence, and incorporation.

Inclusion means that your API is a free-to-consume add-on to an existing service. The goal of this strategy is to nudge users to consume more resources and thus increase payment plans. An independent API means that the API charges the user per the amount consumed. Nordic APIs recommends a “Pay as you Go” strategy for API-centric companies. Lastly, incorporation means that users are only granted access to the API if they are on a premium payment plan.  

Next comes measuring your consumer’s usage activity in order to invoice correctly. Splunk, Mixpanel, and Segment are good tools for analyzing your metrics. API management platforms such as 3Scale, Mashape, and Layer 7 can expedite monetization needs as well. 

Original Article

How to Monetize Your API

Bill Doerrfeld I am a consultant that specializes in API economy research & content creation for developer-centric programs. I study Application Programming Interfaces (APIs) and related tech and develop content [eBooks, blogs, whitepapers, graphic design] paired with high-impact publishing strategies. I live and work in Seattle, and spend most of my time as Editor in Chief for Nordic APIs, a blog and knowledge center for API providers. For a time I was a Directory Manager & Associate Editor at ProgrammableWeb, and still add new APIs to the directory every now and then. Let's connect on Twitter at @DoerrfeldBill, or follow me on LinkedIn.