Pricing strategy
Choosing the right pricing strategy for your API product is a big part of your road to success. Understanding your customers, the market where they’re located, and their preferences in terms of buying is critical to defining the way you price your API. For example, small and medium-sized companies prefer an easy-to-pay subscription service, while larger-sized companies prefer to bind their cost to how much they consume.
In Chapter 3, you learned about the freemium, tiered, and PAYG monetization models. However, there are other models that you can use as an alternative or in combination with the three you learned about before. Let’s start with the freemium model, which offers certain features for free while charging for others. The free features provide enough evidence of value for consumers to want to upgrade to the paid version. The freemium model can be used in combination with any other paid model. The Google Maps API, for example, follows a strategy...
