A Guide To Learn About Different Types Of API For Businesses
APIs are classified into two key groups in relation to the business model. As opposed to the understanding that APIs are a tool, it is more of a product. In this article, we will look at the different types of API available to meet the needs of a business.
Different Types of API Business Models
Here is the classification of an API business model:
Free: This is the simplest form of the business model that enables app developers to access an API free of cost.
Celitech is a leading company that offers programmable wireless data, mobile data API to its global customers. Their proprietary SM-DP++ API helps several online service providers to provide better experiences, value-added services, and improved customer engagement via connectivity.
Developer Pays: In this type of API model, the developer pays for the services offered by the specific API
- Pay As You Go: This model provides a defined pricing plan where the developer needs to pay only for the services that he or she uses through APIs.
- Tired: Here the API comes in different tired packages. The developer needs to select the appropriate package based on their consumption.
- Freemium: In this model, the developer can use the services for free with basic features. They need to pay more to use extra services.
Developer gets paid
In this API model, the developer is paid based on their usage of APIs. The method of receiving payment is classified into two more categories as Revenue share and Affiliate.
Revenue share: Here, the developers are provided a limited share of the total revenue derived from the purchases done via customer referrals.
Affiliate: This method of payment happens when customers refer to developers and depending on the type of affiliation, developers get money. Based on their referencing method, the payments under this case, are divided into the following categories that include CPA, Sign-up Referral, etc.
Ways in which API’s are classified
Here are ways in which an Application programming interface can be used by a business.
APIs in the form of a tool
API or application programming interface is understood as a solution that offers internal service to various departments, external partners, and front-end application developers for the development of services. Products and internal service application programming interface.
APIs as a product
In this case, an API is considered as a consumable. The person who owns it is called as its owner. He becomes a service provider to third parties such as business model APIs, interfaces, and data interfaces. The main aim of using API as a product is to provide a better experience to its users.
In the case of Business model Application Programming Interface, a company shares as well as sells its core services via an API. Some of the most popular technology firms such as Facebook, Google, PayPal, and Twitter consider this kind of interface for performing their activities.
Data interfaces offer information to third parties. It is used for the creation of products as well as services for monetization.
So, we have seen that several API driven business models are available in the world of business. The above information will help you decide the right type of API model for your business.