Monetization models

There are many ways in which you can make money with your API. In 2013, John Musser, an API expert, presented 20 possible business models that APIs can follow. According to Musser, API business models evolved from four basic categories. APIs can be free to use, developers can pay for usage, companies can pay developers, or businesses can generate revenue indirectly from usage. The critical takeaway from Musser’s presentation is that there is more than one way to generate value from an API and break even. I went through all those 20 business models and summarized them into the three most important categories to understand in the context of API-as-a-Product. The main characteristic of an API-as-a-Product is that the API is the only product being offered. In other words, the API is not supporting other parts of the product, so it’s simpler to identify the monetization models that make sense to adopt. Keep reading to learn the difference between the freemium...