What is API? and How does API monetization work?
API Web Monetization
WHY DO WE DEVELOP DIGITAL SOLUTION? Whether it is to offer certain services or ease user life, seeking profit remains the main purpose! There are many ways to generate revenues from web monetization: API plays a major role in many domains with the increasing dependency on cloud spaces nowadays as it is the first approach for many organizations to implement and manage the most complex processes.
Let’s dig into the big world of API web monetization!
What is API?
The application programming interface or API in abbreviation is a set of programming code, steps, instructions, and standards that connect one digital product or device to another to enable data transmission and the employment of external features or services.
How does API monetization work?
API monetization is the process by which businesses create revenue from their application programming interfaces by building relationships in a digital economy
We are using APIs pretty much in many of our daily clicks! Thanks to it, Google is able to display relevant data according to your search, game apps don’t ask you to add your credentials but rather accesses your data from your social platform’s server also PayPal payment functionality used API to ensure that the end application won’t get exposed to sensitive data or gain access to unintended permissions.
API monetization patterns
1* Granting API access for Free
Granting access to an API can be done for free by offering free sign up with the goal of promoting its deliverable. Users can try the API and decide if it meets their needs or not before paying for extra optional access.
You can anytime shift to a more monetized system as free access is a great strategy for service promotion but does not provide profit in the use of the API itself.
2* Paid API
Access to API resources can be under conditions of payment with three common approaches
- Tier access Some API provide levels or packages of access such as bronze, gold, or platinum with a different set of services and permissions
- Pay per utility Where API users pay for specific services they use depending on costs such as the amount of storage required.
- Pay per unit Where the API resource is measured in terms of units that have a unit price. The user pays for the number of units they anticipate using, with the option to buy more when necessary.
3* Reverse payment
In some API models, the user gets paid for using the API and driving other users to revenue streams. This model encourages integration and quality implementation of the resources. It can be done via Ad revenue shares where the user gets paid for advertising the service or via Affiliation methods
There are indirect ways that an API can deliver value such as serving as a marketing and brand awareness tool.
- Marketing channel and traffic generator APIs can serve as a marketing channel for businesses to boost their online presence.
- Content acquisition APIs can be used to write, update and delete content.
Develop API opportunities WITH IndiaNIC
API monetization isn’t just about how you are going to generate revenue via your API, it is also about how you will keep your API in operation and performing for users. At IndiaNIC we develop API to generate opportunities for both businesses and developers to take advantage of in several areas such as 3D printing, automobiles, web, and app development, home automation, etc …
Seize the opportunity to develop a powerful API contact our experts!