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Why Postman's Business Model is so successful?

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Postman’s Company Overview

Postman, founded in 2014 by Abhinav Asthana, is a highly popular collaboration platform for application programming interface (API) development. Headquartered in San Francisco, Postman has become an essential tool for developers, helping them streamline designing, testing, and managing APIs. The platform focuses on simplifying API development, making it more efficient and collaborative for teams of all sizes. Postman's business model is centered around providing a feature-rich API development environment for developers, testers, and other stakeholders. Postman offers a free, basic version of its platform, allowing users to create and test APIs with essential features. Postman operates on a freemium model to unlock advanced capabilities and collaboration tools, offering subscription-based plans such as Postman Pro and Postman Enterprise. These plans cater to individual developers, small teams, and large enterprises, providing features like team collaboration, automated testing, and advanced monitoring. Postman generates revenue through its subscription plans, where users pay a monthly or annual fee based on their usage and requirements. The platform collaborates with enterprises to offer tailored solutions, including on-premise deployments and dedicated support. With a focus on enhancing the API development workflow, Postman has gained widespread adoption in the developer community, playing a pivotal role in modernizing and optimizing the API development process for organizations globally.

Country: California

Foundations date: 2014

Type: Private

Sector: Technology

Categories: Software

Postman’s Customer Needs

Social impact:

Life changing: affiliation/belonging

Emotional: rewards me, design/aesthetics, badge value

Functional: saves time, simplifies, reduces effort, informs

Postman’s Related Competitors

Postman’s Business Operations


A business ecosystem is a collection of related entities ? suppliers, distributors, customers, rivals, and government agencies ? collaborating and providing a particular product or service. The concept is that each entity in the ecosystem influences and is impacted by the others, resulting in an ever-changing connection. Therefore, each entity must be adaptive and flexible to live, much like a biological ecosystem. These connections are often backed by a shared technical platform and are based on the flow of information, resources, and artifacts in the software ecosystem.


Freemium is the sum of the words free and premium and refers to a business strategy that provides both free and premium services. The freemium business model works by providing essential services for free and charging for enhanced or extra capabilities. This is a typical practice among many software firms, who offer imperative software for free with restricted functionality, and it is also a popular approach among game developers. While everyone is invited to play the game for free, extra lives and unique game features are accessible only once the player buys.


Compared to more centralized development methods, such as those usually employed by commercial software firms, the open-source model is more decentralized. Scientists see the open-source approach as an example of collaborative openness. Peer production is a fundamental concept of open-source software development, with deliverables such as source code, blueprints, and documentation made freely accessible to the public. The open-source software movement started as a reaction to the constraints imposed by proprietary programming. Since then, its ideas have extended to other areas, resulting in what is known as open cooperation. Typically, money is generated via services that complement the product, such as advising and maintenance.

Platform as a Service (PaaS):

Platform as a Service (PaaS) is a class of cloud computing services that enable users to create, operate, and manage apps without the burden of establishing and maintaining the infrastructure usually involved with designing and developing an app.

Software as a Service (SaaS):

Software as a Service (SaaS) is a paradigm for licensing and delivering subscription-based and centrally hosted software. Occasionally, the term on-demand software is used. SaaS is usually accessible through a web browser via a thin client. SaaS has established itself as the de facto delivery mechanism for a large number of commercial apps. SaaS has been integrated into virtually every major enterprise Software company's strategy.


Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

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