Published: 07 November 2022
The pricing of many SaaS products does not support customers’ demand for APIs for integration or composable application creation. As part of an API-first approach, product leaders must reimagine their pricing models to ensure simplicity, transparency and predictability when customers consume APIs.
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When adding API access to an existing product, technology providers run the risk of customers’ use of APIs jeopardizing performance and significantly adding to operating costs.
After investing heavily in APIs, some product leaders want to recover their investment by selling the APIs separately.
Software product leaders trying to monetize APIs should:
Indirectly monetize API access by including it in a higher-value product packaging or by revising the product’s pricing model to charge based on easily understood business value metrics.
Directly monetize API access by using tiered pricing or by pricing individually either some or all APIs.
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