By D. Jacobson, et. al.
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Sample text
For the developer, value from the usage of free APIs can accrue from the use of the business assets, awareness of content provided, through the ability to reach new customers, or any number of other ways. For the provider, a “free” API with no significant business benefit might still add some cachet or “cool factor” to the company and the team. Of course, there are lots of good reasons to offer an API to developers for free, but these are better described under the Indirect category below. In reality, there are very few totally “free” APIs—most successful APIs are attached to some sort of business benefit, as described below.
We’ve been able to use the API to innovate together with partners. They innovate on the frontend and we can innovate on the backend with our API as the content provider. This has changed our development—we are now almost doing joint development with partners. The API is now almost a line of business itself. ” Gaining Indirect Revenue Revenue sharing is an emerging model for marketplaces with certain characteristics. Not every marketplace supports this model, but it has worked for some companies that initially took a different approach.
In part, APIs are now successful because they are productized, and they allow for true self-service that makes communication more efficient between the API provider and the developers who use it. The power of an API diminishes dramatically if the only people who can use it are the experts who created it. For an API to be truly useful, it must be productized so that others can use it themselves. Using an API internally does not change this principle, although some implementation details may be different.