monetize the twitter api

Monetize the Twitter API

Sachin Rekhihttp://www.sachinrekhi.com

Is Twitter Making Money Today?

NONO

http://www.sachinrekhi.com

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


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


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



• 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



• 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


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.



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.



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


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


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.


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).


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.


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.


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.


monetize the twitter api

Technology