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The Art of Selling API - I Edition

An overview of the API Market and all the business models applicable to monetize an API. The API TAM is growing fast and nowadays selling your API must be your new business model.

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The Art of Selling API - I Edition

  1. 1. Feb 2013The Art of Selling APIs I edition Augusto Marietti Co-founder/CEO of Mashape The Cloud API Hub
  2. 2. # of Developers in the world +25 MillionWith a lot of decision power and money Source: Joel Spolsky, StackOverflow - Startup School 2012
  3. 3. APIs: The Growth is accelerating Source: ProgrammableWeb
  4. 4. APIs: The Growth is accelerating Source: ProgrammableWeb
  5. 5. APIs In Every Sector Software and Hardware
  6. 6. It’s a Source of RevenueAPI =“cloud”
  7. 7. Charge per “Object” SMS API Call Data Point Query Status ClassifiedWord Processed MB Face Detected Etc.
  8. 8. 3 New Positions API Engineer API Evangelist API Business DevelopmentA few years ago, these positions didn’t exist.
  9. 9. EmploymentToday, thousands of employees work in the API Market. AWS has 600 open positions
  10. 10. If Software is the recipe; APIs are the ingredients.
  11. 11. Who Started this?2001NOW! +60% of all listings on eBay added via their APIs
  12. 12. First well-known API Startup (2008)
  13. 13. API Business Models20052013 *Designed by John Musser, founder of ProgrammableWeb
  14. 14. Today Landscape Credits: John Musser
  15. 15. FreeFacebook API is free, but it takes a cut of in- app payments (Farmville Coins). Credits: John Musser
  16. 16. Developers PayDevelopers pay directly to the API provider Credits: John Musser
  17. 17. Developers get paidDevelopers get paid by the API provider Credits: John Musser
  18. 18. Indirect ModelEbay APIs support sellers with create listings, leave feedbacks, etc Credits: John Musser
  19. 19. Multiple Plans
  20. 20. Multiple Plans ns Pla lti pl eMu m its Li res atuFe
  21. 21. Pay as you go go ou sy ya Pa
  22. 22. API is THE Product (2006)
  23. 23. API is THE Product (2013)
  24. 24. Example: API to Accept PaymentsProcessing +$5 Billion/year (2.9% + 30 cents per transaction)
  25. 25. Product APIs: Overall Revenue2007: <$100M
  26. 26. Product APIs: Overall Revenue2012: +$3 Billion (AWS generated ~$1.5B)*AWS market value could be close to $20B In a new research, Macquarie Capital contends that Amazon Web Services is not only profitable, it would be a $19 billion business if it were counted as a standalone entity.
  27. 27. API as an Extension of the Product
  28. 28. Example: Expedia API $2 Billion/year“90% of what we do is business through APIs” John Watton, Expedia Affiliate Network, April 2012 Credits: John Musser
  29. 29. Extension APIs: Overall Revenue 2007: <$100M 2013: Billions
  30. 30. So, APIs Potential is Huge. Already. Direct + Indirect +$10 Billion /Year (2013) API Revenue generated by: Expedia, Salesforce, Facebook, Ebay, Amazon, etc.
  31. 31. One more thing... ^__^Plus, the broader market of Tools for APIs
  32. 32. Remember 2013Your API is your Business Model
  33. 33. Thanks!Q&A Time support@mashape.comYou should follow me here: @sinzone