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API Monetization 101

Use AI to Plan Your API Pricing Strategy

Martyn Davies
·
February 26, 2026
·
3 min read

Get clear tiers, a comparison table, and reasoning so you can price your API with confidence and move on to implementation faster.

February 26, 2026

Figuring out how to price your API is one of those problems that sounds simple until you sit down to actually do it. How many tiers should you have? Should you charge per request, per token, or flat monthly? What happens when someone goes over their limit?

This is the third post in our API Monetization 101 series. Part one covered metering and enforcement; part two covered plans, phases, and rate cards. Here we focus on using AI to get your pricing strategy clear before you build.

Most teams spend weeks going back and forth on pricing spreadsheets, only to pick something arbitrary and hope it works.

There's a better way: use an LLM to help you think through your pricing model. You get a concrete structure, a comparison table, and reasoning you can socialize and refine before you lock in numbers or touch any billing code.

Use this approach if you're:
  • You have an API you want to monetize but haven't nailed down your pricing model yet
  • You've been putting off the "figure out billing" task because it feels overwhelming
  • You want a clear way to compare tiers and tradeoffs before committing to a structure
Private Beta

Zuplo API Monetization Beta

Zuplo's API monetization is in private beta. Register for early access and we'll reach out when you can try it.

Use AI to Think Through Your Pricing Strategy

LLMs are surprisingly good at helping you work through pricing decisions. They can ask the right questions, suggest structures based on your API's characteristics, and give you a concrete plan to review.

Here's a starter prompt you can paste into Claude, ChatGPT, or whichever LLM you prefer. The model will ask you a set of questions, then design a strategy from your answers:

text
I need help designing a pricing strategy for my API. Please work with me in two phases.

**Phase 1 — Ask me these questions in turn.** Wait for my answer to each (or each small group) before moving on. Don't move to Phase 2 until you have enough from me to work with.

1. What does my API do? (What problem does it solve? Who uses it?)
2. What do I want to meter? (API requests, tokens, data transfer, records returned, compute time, etc.)
3. Who are my target customers? (Individual developers, startups, enterprises, or a mix?)
4. What do I know about my costs? (Rough cost per request, token, or unit?)
5. Are there competitors? If so, what's their pricing if I know it?
6. What are my goals? (Maximize adoption? Revenue? Both? Do I want a free tier?)

**Phase 2 — Design the strategy.** Using my answers, propose a pricing strategy. For each plan tier, specify:

- Plan name and target audience
- Pricing model (flat fee, usage-based, or hybrid; monthly or annual)
- Included usage (how many requests/tokens/units)
- Overage handling (hard cap vs soft cap) and overage pricing if soft cap
- Additional features that differentiate tiers (e.g. priority support, advanced analytics, SLA)
- Free trial (yes/no and length if yes)

Present the recommendation as a comparison table so I can review all tiers side by side. After the table, explain your reasoning: why this structure, why these price points, and what tradeoffs I'm making.

The LLM will suggest specific numbers for each tier. Treat these as a starting point, not gospel. Adjust based on what you know about your market and your margins.

Example summary table: Free, Starter, Growth, and Enterprise tiers with price, lookups, overage, rate limit, support, and SLA

This is only part of the output. The full response also includes reasoning and tradeoffs. In this example, the API provides company enrichment data looked up by domain name.

Use AI to Plan Your API Pricing Strategy
Video Tutorial

Use AI to Plan Your API Pricing Strategy

Watch how to use an LLM to walk through pricing questions and get a clear strategy, comparison table, and reasoning.

Why This Approach Helps

Getting clarity on pricing before you monetize saves time. You end up with a comparison table you can share with stakeholders, a clear rationale for each tier, and a vocabulary (flat fee, overage, trial, features) that maps directly to how billing systems and API gateways think.

When you're ready to implement, your strategy maps onto standard building blocks: meters (what you count), features (what you sell), and plans. For more on how those work in practice, see the rest of the series:

API Monetization 101: Metering, Features & Enforcement
Video Tutorial

API Monetization 101: Metering, Features & Enforcement

Learn about the foundations of API Monetization. What types of metering work for different API types? What are features? How do you enforce limits? Watch and find out!

API Pricing Plans, Phases, and Rate Cards
Video Tutorial

API Pricing Plans, Phases, and Rate Cards

See how plans, phases, and rate cards work together: subscription tiers, trials, and modeling what you're selling.

Next Steps

  1. Run the prompt above with your API's details and review the output.
  2. Adjust the numbers and structure to match your business and margins.
  3. Use the table and reasoning to align with your team or leadership.
  4. When you're ready to ship, use the Zuplo Monetization API to build.

Zuplo Monetization is currently in private beta. If you want to implement metering and plans directly in your API gateway, register below.

Private Beta

Zuplo API Monetization Beta

Zuplo's API monetization is in private beta. Register for early access and we'll reach out when you can try it.

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