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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: The Growth is accelerating




          Source: ProgrammableWeb
APIs In Every Sector
  Software and Hardware
It’s a Source of Revenue




API =
“cloud”
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
First well-known API Startup (2008)
API Business Models

2005



2013


        *Designed by John Musser, founder of ProgrammableWeb
Today Landscape




                  Credits: John Musser
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
Multiple Plans


                ns
             Pla
  lti pl e
Mu

                                      m its
                                 Li


       res
   atu
Fe
Pay as you go

          go
       ou
     sy
   ya
 Pa
API is THE Product (2006)
API is THE Product (2013)
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.
API as an Extension of the Product
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