APIs are a critical asset for businesses as they provide access to valuable information and functionalities. They also create an opportunity for API monetization—the process of charging for access to or use of an API to create new revenue streams.
But how are businesses monetizing their APIs? With Apigee!
This article will discuss the key components of Apigee API monetization as well as what you need to do to set it up.
What is Apigee API Monetization?
The Apigee API Monetization solution provides enterprises with powerful tools to streamline their business and create new revenue sources. Apigee is a leading platform for API management, providing everything you need to monetize your APIs successfully.
With Apigee, you can easily set up rate limiting, analytics, and billing, which are vital for any successful API monetization strategy. Apigee also offers a wide range of tools for marketing your APIs and analyzing how clients use them.
Critical Components of API Monetization
Several key components go into Apigee's API monetization. If you're new to this process, here are the essential tools you need for your monetization success.
API Portals: A partner ecosystem that makes it easy for developers and non-technical partners alike to access and consume API products.
API Proxies: API proxies act as intermediaries between applications and backend services, making API requests on their behalf.
API Product: An API product is a collection of API proxies that you can use to deliver customized, production-ready bundles to your developer community.
API Product Bundle: An API product bundle is a collection of related API product services that can be accessed through APIs by developers to build software.
Rate Plan: A rate plan defines the costs of accessing APIs provided as part of a monetized API bundle between your company and your client.
How to Set Up Apigee Monetization
You don't want to share your API with just anyone, which is why you'll need to follow certain steps that give you full control of who has access to you API ecosystem and how they can use it.
Once you've completed these steps, you will be able to share your APIs with your developer community and build your revenue stream.
1. Render API Proxies
API security is an important concern for any company that processes API requests and responses. Creating a proxy between your API and applications that call it is one of the most effective ways to protect your API once you monetize it.
By creating a proxy that models your API, you can easily control how it's used. You could then attach policies to transform and mediate requests based on your monetization needs.
The most common policies to attach include:
Security: Authentication, authorization, and other content-based security measures, for example, VerifyAPIKey, VerifyAccessToken, and OAuth 2.0.
Traffic Management: The policies in this category will help you control who accesses your API proxy and how they're able to use it, for example, the Quota policy.
Monetization Variables: This policy is a great way to to populate the monetization variables with usage data so that the monetization system can calculate charges/fees, for example, the DataCapture policy.
Developer Subscription Checks: This policy determines if the developer has sufficient funds in their account and is a legitimate client, for example, the MonetizationLimitsChecks policy.
2. Set Up API Products
Once you have set up your API proxies, it's time to create market-driven API products. These are specific groups of resources that address the needs of developers and business units in your community.
API products allow you to:
Control how your APIs are presented to developers
Enforce consistent branding across all of your API products
Make it easier for developers to find and use the APIs they need
House your APIs in a single portal
Apply and enforce policies at the product level for APIs within a product
Simplify policy management for large numbers of APIs