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API / APIGEE Gateway Interview Questions

What is Apigee monetisation and how does it work?

Apigee Monetisation is a feature that enables API producers to charge developers for API consumption. It builds on the API Product model to attach pricing plans, enforce payment-based quotas, and generate revenue reports.

Apigee monetisation concepts
ConceptDescription
Rate planA pricing plan attached to an API Product (flat fee, per-transaction, tiered, revenue sharing)
Developer categoryGroups of developers with different pricing (e.g. startups get discounts)
BalanceEach developer maintains a prepaid or postpaid balance
Revenue reportFinancial reports on API call revenue per developer, product, or period
NotificationEmail alerts to developers when balance is low or quota is near
Supported modelsFlat fee, freemium, pay-as-you-go, tiered, revenue sharing
# Monetisation workflow:
#
# 1. API producer creates an API Product (as usual)
# 2. Attaches a Rate Plan to the product
#    - Type: FLAT_FEE, VOLUME_BANDED, REVENUE_SHARE
#    - Charge per API call, per month, or percentage of transaction value
# 3. Developer purchases the plan from the developer portal
#    - Prepaid: loads credits; each call deducts from balance
#    - Postpaid: invoiced at end of billing period
# 4. Apigee enforces quotas and tracks usage for billing
# 5. Revenue reports available in Apigee UI:
#    Monetisation > Reports > Revenue

# Monetisation rate plan types:
#   FLAT_FEE:      Fixed monthly charge for access
#   VOLUME_BANDED: Tiered pricing (first 1k calls free, then $0.001 each)
#   REVENUE_SHARE: API producer takes % of transaction value
#   DEVELOPER:     Developer pays for specific call count bundles

# Minimum Apigee tier: Monetisation requires Apigee Pay-As-You-Go
# or Subscription tier (not available on free tier)

Which Apigee feature enables API producers to charge developers based on the number of API calls they make?
What is the difference between a prepaid and postpaid billing model in Apigee Monetisation?

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