Overview of Apigee monetization

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This section introduces you to Apigee monetization.

Monetize your APIs using Apigee monetization

As an API provider, you need an easy-to-use and flexible way to monetize your APIs so that you can generate revenue whenever your APIs are used. Using Apigee's monetization feature, you can add a rate plan to an API product. The rate plan lets you charge the developers for using your APIs. You can also configure the rate plan to share your API revenue with the developers.

API provider creates API product that defines the API proxies
                                                                                         and rate plans that can be purchased by app developers. App developers are giving an API key when they
                                                                                         purchase a rate plan. API providers can generate usage reports for analysis and billing.

As an API provider you monetize your APIs by enabling Apigee monetization in your organization and configuring the components defined in the following table.

Component Description
API proxies

When developing API proxies for use with monetized API products, you can attach the following policies:

  • VerifyAPIKey policy or VerifyAccessToken policy to determine if an incoming request is monetizable by checking for the active published rate plan. For more information, see Adding an authentication policy.
  • MonetizationLimitsCheck policy to validate if the developer has purchased the associated API product and has sufficient balance in the wallet. For more information, see Enforcing developer subscriptions to API products.
  • Quota policy to use the quota configuration defined using the API product. For more information, see Enforcing monetization quotas.
  • DataCapture policy to override monetization-related usage data. For more information, see Capture monetization data.
API product

Define the collection of API proxies that you want to provide to app developers as a monetized bundle. The API product configures the access limits (quotas), API key approval method, rate plan (described below), and other details for the bundled API proxies. For more information, see What is an API product? and Enforcing monetization quotas in API products.

Rate plan

Define the billing configuration, fees, and charges that are incurred for the use of APIs offered in a monetized API product bundle. For example, you can share the API revenue with your developers. For more information, see Managing rate plans for API products.

To enable app developers to purchase API product subscriptions, as an API provider you can do one of the following:

To access APIs, app developers purchase API product subscriptions, add them to their apps, and obtain an API key to send with API requests.

Understanding monetization quotas

A quota defines the number of requests allowed for an API product over a given time period. Quotas can protect your backend servers from high traffic variances and differentiate your product line.

When creating your API products, you can configure business-level quotas to control access to your APIs. For more information about quotas defined at the API product level, see Quotas.

Attach Quota policies to the API proxies in your monetized API product to ensure that the quota defined at the API product level is used. For more information, see Enforcing monetization quotas.

Understanding billing

Apigee monetization supports both postpaid and prepaid billing accounts.

  • Postpaid billing: In postpaid billing, your app developers do not make any upfront payment. The app developers are billed after using your API products.
  • Prepaid billing: In prepaid billing, app developers would have paid in advance even before using your API products. The upfront payment made by the developers will be available in the developer's wallet. Based on the usage, the per-transaction cost is deducted from the wallet.

When creating a rate plan, you configure the billing currency and frequency and the consumption-based fees. Based on the rate plan configuration and the developer's unique API key used to access your APIs, you can collect usage data for analysis and to generate monetization reports. Then, you can use the data collected to generate your billing invoices.

Comparing monetization with Apigee X/Hybrid and Apigee Edge

The following table provides a comparison of key features between Apigee X Monetization and Apigee Edge Monetization.

Apigee X/Hybrid Monetization Apigee Edge Monetization
Rate plans are associated with API products (one-to-one relationship) Rate plans are associated with API product bundles that can be attached to multiple API products
App developers purchase API products App developers purchase rate plans
Quotas are managed at the API product level (business level) Quotas are managed at the API proxy level
Published rate plans can be expired, edited, moved to draft, or deleted Published rate plans can only be expired; they cannot be edited or deleted
Simplified configuration of rate plans using wizard and preview tool Complex configuration (no wizard or preview tool)
MonetizationLimitsCheck policy blocks access immediately if app developer has not purchased a subscription MonetizationLimitsCheck policy blocks access after first API call is processed if app developer has not purchased a subscription
Apigee automatically captures monetization data, and monetization data for transactions can be overridden using the DataCapture policy. See Capture monetization data for information. Monetization data for transactions can be captured by using custom variables in the Transaction Recording policy.
Prepaid and Postpaid accounts can only be configured for developers. Prepaid and Postpaid accounts can be configured both for developers and for rate plans.