API business models and pricing
Based on our review of the world’s top 100 API developer portals, we have identified the following trends in terms of pricing and business models.
Top 100 companies business models:
STARTING PRICE AVG
AVERAGE COMPANY AGE
PAY AS YOU GO
Rounded average API prices based on the company website traffic:
LOWEST TRAFFIC HALF
HIGHEST TRAFFIC HALF
PAYG (PAY AS YOU GO)
Rounded average API prices based on the company funding:
LOWEST FUNDING HALF
HIGHEST FUNDING HALF
For PAYG business models, no company monetizes their API based on the number of API calls. Instead, business models are based on Credits, MAU, Revenue Sharing or custom metric values. Those values are custom metrics and are closely tied in to the business value provided, either based on minutes, transactions, consumption step, etc. You can check our whitepaper to look at custom metric values for APIs.
Average company age per business model and API type:
NO PUBLIC INFO
Business model per API type:
No Public Information
The subscription model is widely used for “Service” type APIs whereas this is not the case for “Processing” type APIs. All in all, PAYG is the business model used most.