The Mickey Model: A New API Business Model

The founder of Ziggeo, Susan Danziger, couldn’t find an existing API business model that suited both her company as well as her customers. So stemming from her own experience negotiating agreements with such media companies as LucasFilm and Disney, she developed and launched a brand new API business model that she deems “The Mickey Model”. It includes a monthly retainer that serves as an advance against a guarantee -- a model that echos the terms of the licensing agreements she previously negotiated.

Ziggeo has launched Basic, Premium and Pro Plans, each of which represents a certain volume discount and also unlocks certain features (higher plans offer more advanced features). It also launched a Free tier just for testing.

Each month, depending on the plan selected, customers pay a certain minimum monthly guarantee. Depending on usage during that month based on video recordings, playback and storage set at a fixed per second rate, charges will accrue during the month. At the end of each month a reconciliation between what was paid as a guaranteed and the actual charges incurred takes place, and customers pay any overages due.

It’s a win-win model for Ziggeo and its customers. Customers aren’t limited by the plans themselves -- and Ziggeo is guaranteed monthly payments.

By Pigby (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0) or Public domain], via Wikimedia Commons