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.

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