The Art of Selling API - I Edition

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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.

Tecnología

Feb 2013

The Art of Selling APIs
I edition

Augusto Marietti
Co-founder/CEO of Mashape

The Cloud API Hub

# of Developers in the world

+25 Million
With a lot of decision power and money

Source: Joel Spolsky, StackOverﬂow - Startup School 2012

APIs: The Growth is accelerating

Source: ProgrammableWeb

APIs In Every Sector
Software and Hardware

Charge per “Object”
SMS
API Call Data Point
Query
Status Classiﬁed
Word Processed MB

Face Detected Etc.

3 New Positions
API Engineer

API Evangelist

API Business Development

A few years ago, these positions didn’t exist.

Employment

Today, thousands of employees
work in the API Market.

AWS has 600 open positions

If Software is the recipe; APIs are the ingredients.

Who Started this?

2001

NOW! +60% of all listings on eBay
added via their APIs

API Business Models

2005

2013

*Designed by John Musser, founder of ProgrammableWeb

Free

Facebook API is free, but it takes a cut of in-
app payments (Farmville Coins).

Credits: John Musser

Developers Pay

Developers pay directly to the API provider

Credits: John Musser

Developers get paid

Developers get paid by the API provider
Credits: John Musser

Indirect Model

Ebay APIs support sellers with create
listings, leave feedbacks, etc
Credits: John Musser

Multiple Plans

ns
Pla
lti pl e
Mu

m its
Li

res
atu
Fe

Example: API to Accept Payments

Processing +$5 Billion/year
(2.9% + 30 cents per transaction)

Product APIs: Overall Revenue

2007: <$100M

Product APIs: Overall Revenue

2012: +$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.

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

Extension APIs: Overall Revenue

2007: <$100M
2013: Billions

So, APIs Potential is Huge. Already.

Direct + Indirect

+$10 Billion /Year
(2013)

API Revenue generated by: Expedia, Salesforce, Facebook, Ebay, Amazon, etc.

One more thing... ^__^
Plus, the broader market of Tools for APIs

Remember

2013

Your API is your Business Model

Thanks!

Q&A Time
support@mashape.com

You should follow me here:
@sinzone

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The Art of Selling API - I Edition

1. Feb 2013 The Art of Selling APIs I edition Augusto Marietti Co-founder/CEO of Mashape The Cloud API Hub

2. # of Developers in the world +25 Million With a lot of decision power and money Source: Joel Spolsky, StackOverﬂow - Startup School 2012

3. APIs: The Growth is accelerating Source: ProgrammableWeb

4. APIs: The Growth is accelerating Source: ProgrammableWeb

5. APIs In Every Sector Software and Hardware

6. It’s a Source of Revenue API = “cloud”

7. Charge per “Object” SMS API Call Data Point Query Status Classiﬁed Word Processed MB Face Detected Etc.

8. 3 New Positions API Engineer API Evangelist API Business Development A few years ago, these positions didn’t exist.

9. Employment Today, thousands of employees work in the API Market. AWS has 600 open positions

10. If Software is the recipe; APIs are the ingredients.

11. Who Started this? 2001 NOW! +60% of all listings on eBay added via their APIs

12. First well-known API Startup (2008)

13. API Business Models 2005 2013 *Designed by John Musser, founder of ProgrammableWeb

14. Today Landscape Credits: John Musser

15. Free Facebook API is free, but it takes a cut of in- app payments (Farmville Coins). Credits: John Musser

16. Developers Pay Developers pay directly to the API provider Credits: John Musser

17. Developers get paid Developers get paid by the API provider Credits: John Musser

18. Indirect Model Ebay APIs support sellers with create listings, leave feedbacks, etc Credits: John Musser

19. Multiple Plans

20. Multiple Plans ns Pla lti pl e Mu m its Li res atu Fe

21. Pay as you go go ou sy ya Pa

22. API is THE Product (2006)

23. API is THE Product (2013)

24. Example: API to Accept Payments Processing +$5 Billion/year (2.9% + 30 cents per transaction)

25. Product APIs: Overall Revenue 2007: <$100M

26. Product APIs: Overall Revenue 2012: +$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. API as an Extension of the Product

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. Extension APIs: Overall Revenue 2007: <$100M 2013: Billions

30. So, APIs Potential is Huge. Already. Direct + Indirect +$10 Billion /Year (2013) API Revenue generated by: Expedia, Salesforce, Facebook, Ebay, Amazon, etc.

31. One more thing... ^__^ Plus, the broader market of Tools for APIs

32. Remember 2013 Your API is your Business Model

33. Thanks! Q&A Time support@mashape.com You should follow me here: @sinzone

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