Download - Monetize The Twitter API
Monetize the Twitter API
Sachin Rekhihttp://www.sachinrekhi.com
Is Twitter Making Money Today?
NONO
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But The Twitter Ecosystem Is!
Desktop Clients
- $14.95
- $25
Advertising in Tweets
Funded StartupsiPhone Clients
Tweetie - $2.99
Summizer - $2.99
Twittelator Pro - $4.99
Tweetsville - $3.99
Funded Startups
Acquired Startups
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Monetize the Twitter API
• Twitter should monetize the channel that is already
generating revenue for the ecosystem
• By launching the Twitter Developer Program, Twitter
can extract revenue from its partners by providing
them with frequently requested benefits
• Creates a healthy ecosystem where Twitter
encourages platform apps to monetize
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Successfully Monetized APIs
• Provides APIs for third
party publishers to accept
PayPal transactions and
payments
• Microsoft paid partners
get access to discounted
developer tools, free
marketing of their payments
• Monetizes every
transaction by taking a
variable percentage
marketing of their
products, and access to
premium support
• Microsoft charges for
every product that wants
the Certified for Windows
seal to gain customer trust
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Successfully Monetized APIs
• While anyone can develop an app for free, Apple
requires all developers that wish to publish to the requires all developers that wish to publish to the
App Store to join their iPhone Developer Program
• Developers pay between $99-$299
• With 15K apps and growing, its a several million
dollar opportunity
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Successfully Monetized APIs
• Facebook Platform’s Application Verification Program
provides developers with a badge to encourage user provides developers with a badge to encourage user
trust of the app, increased distribution allocations for
all viral channels, and an advertising credit
• At $375/app/yr and over 48K apps, that’s tens of
millions in annual revenue
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Twitter Developer Program
Benefit Details
Commercial Use Only applications that have registered for the
developer program will be allowed to use the Twitter
API for commercial use (ex: charging for your app,
advertising in your app). Non-commercial use will
always be free.
Twitter App Directory As part of launching this program, Twitter will launch a
full app directory that allows any app developer to
add their Twitter mashup for easy app discovery by
twitter users.
Developer’s who are part of the developer program
will be eligible to apply for the certified app program
to get a badge to increase trust with users and will
also receive premium placement in the app directory.
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Twitter Developer Program
Benefit Details
Increased Rate Limits Developer program participants will have increased
client rate limits (currently 100 requests/hr) and
developer rate limits (currently 20,000 requests/hr) to
improve user and developer experience.
Technical Support Program participants will have priority access to Technical Support Program participants will have priority access to
developer technical support to support their
application development.
Access to Firehose API A premium developer program will be offered for
those key partners that need access to the proverbial
“firehose” that gives them access to all non-protected
tweets.
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Twitter Developer Program
Plan Pricing Features
Twitter Developer Program $199 -commercial use
-app directory
-increased rate limits
-technical support
Twitter Developer Program Pro $9,999 -commercial useTwitter Developer Program Pro $9,999 -commercial use
-app directory
-increased rate limits
-technical support
-access to firehose API
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Size of Opportunity
Monetize the Twitter API - Size of Opportunity
Plan Type Plan Price Year 1 Year 5 Year 10
New Units Revenue New Units Revenue New Units Revenue
Twitter Developer Program $ 199 200 $ 39,800 5,000 $ 995,000 20,000 $ 3,980,000
Twitter Developer Program Pro $ 9,999 20 $ 199,980 500 $ 4,999,500 1,000 $ 9,999,000
Totals 220 $ 239,780 5,500 $ 5,994,500 21,000 $ 13,979,000
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FAQ
Won’t charging developers discourage Twitter mashup s?
No. Even under this program, the Twitter API will always be available for free use. Developers can continue to sign up and tinker with the APIs to their hearts content. Only when they wish to use the Twitter APIs for commercial use or are looking to further promote their application will they be charged. And at that point, they are likely to be generating revenue from be charged. And at that point, they are likely to be generating revenue from the Twitter platform and it is fair to share that with the platform.
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FAQ
Aren’t there larger Twitter revenue opportunities?
There definitely are opportunities that will generate significantly more revenue than the developer program. However, these other potential opportunities have significant risk, as they require introducing new unproven commercial concepts to Twitter. Developers are already making money today in the Twitter ecosystem and asking developers for a share of money today in the Twitter ecosystem and asking developers for a share of that has reduced risk.
In addition, this revenue opportunity is not detrimental to the user experience as many alternative revenue opportunities may be (ex: charging users for access to Twitter features or introducing advertising).
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FAQ
Shouldn’t a SLA be part of the developer program?
I think introducing a service legal agreement for developers has historically been an important part of developer programs. Amazon Web Services, for example, provides such an SLA. I also think that Twitter should consider adding this to the developer program over time.
However, it may still be too early to introduce an SLA for Twitter as it continues to improve the robustness of its infrastructure.
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FAQAren’t you capping the upside of the opportunity by charging a fixed fee instead of a percentage of revenue for develope rs (as Apple charges for iPhone apps)?
While I agree that the upside is artificially limited in this early version of the developer program, lack of control and simplicity are two reasons to at least initially launch with this approach.
Unlike Apple where they have full control of the app store, Twitter does not have control over much of what goes on with its mashups. Therefore it would be difficult for them to charge on a developer revenue basis.
In addition, a low fixed price point provides a simpler model for all developers to understand and adopt.
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FAQ
Third parties are already building Twitter app dire ctories. Why should Twitter build one itself?
As the success of the Facebook, iPhone, and Android platforms have taught us, platforms succeed when there is a comprehensive, easy-to-use app directory for application discovery and installation.
While there are several third parties building this, no one app directory is comprehensive. By Twitter providing one, everyone will be encouraged to simply submit to the one official directory. In addition, Twitter can provide consumer trust by ensuring apps listed on the directory behave well, aren’t malicious, and then advertise these benefits to users.
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