Lessons learned from $0 to $1M API revenue

By Jeff Boudier @ API Strategy & Practice Conference
San Francisco, October 23-24-25, 2013

Transcript

1. Lessons learned from $0 to $1M API revenue Jeff Boudier, cofounder & revenue @jeffboudier / jeff@stupeflix.com
2. Lessons learned from $0 to $1M API revenue
3. Context > paid usage API > infrastructure API > B2D
4. Stupeflix [stü]-[pè]-[flíx] infrastructure API 1. video creation API 2. API toolkit for media creation and processing
5. Lessons learned 1. Devs look for solutions, not APIs 2. Biz dev is a waste of time 3. Pricing is positioning 4. Bad marketing + great support = customer dev 5. API prices go down, service prices go up 6. Dogfooding: build great consumer apps
6. 1. Devs look for solutions, not APIs
7. 1. Devs look for solutions, not APIs
8. 1. Devs look for solutions, not APIs Your customers are your biggest competitors
9. 1. Devs look for solutions, not APIs Your biggest competitors are your best marketers
10. 2. Biz dev is a waste of time Outreach: you can’t create demand you don’t change one’s roadmap
11. 2. Biz dev is a waste of time Inbound: employee turnover time << enterprise dealmaking time
12. 3. Pricing is positioning July 2009 $1,500 /mo immediate need long term need immediate volumes established businesses direct monetization Feb 2012 $300 /mo immediate need direct monetization Oct 2013 $30 /mo +indies +freelancers
13. 3. Pricing is positioning July 2009 $1,500 /mo Feb 2012 $300 /mo Oct 2013 $30 /mo 0 10000 20000 30000 40000 0 0 10000 10000 20000 20000 30000 30000 40000 40000 addressable market
14. 3. Pricing is positioning have public pricing have always-free tier start with low-hanging, high-value talk to customers
15. 4. bad marketing + great support *high* public price + contact us = instant conversation
16. 4. bad marketing + great support (outdated) OR (incomplete) DOC + contact us = instant conversation
17. 0 10000 20000 30000 40000 0 0 10000 10000 20000 20000 30000 30000 40000 40000 5. API prices‑ service prices ‐ $ /mo # customers start here offer service $10 $1000 $100k decrease API prices increase service fees
18. 6. Build great consumer apps permanent testing uptime, scalability, reliability 80% of referral traffic
19. Lessons learned 1. Devs look for solutions, not APIs 2. Biz dev is a waste of time 3. Pricing is positioning 4. Bad marketing + great support = customer dev 5. API prices go down, service prices go up 6. Dogfooding: build great consumer apps
20. Thanks! @jeffboudier / jeff@stupeflix.com