Proof of Concept (POC): Structuring Paid and Free Pilots

A well-run POC has a defined scope, success criteria signed by the customer, a timeline, and a clear conversion path to a paid contract.

Proof of Concept: The Enterprise Sales Motion That Either Closes Deals or Kills Them

A Proof of Concept (POC) is a time-boxed engagement where an enterprise prospect uses your product against a defined use case to validate it works before committing to a full contract. Done well, POCs close deals that would otherwise die in evaluation. Done poorly, they become extended free trials that consume CS and eng bandwidth while the customer never signs — the sales version of quicksand.

When to offer a POC

Only after a qualified opportunity — economic buyer identified, budget confirmed, use case scoped, decision timeline agreed. POCs offered to unqualified prospects are lead magnets, not sales motions. If the customer isn't willing to commit to a decision at POC conclusion, don't run the POC.

The POC agreement

Every POC needs a written document (email or one-pager) covering: (1) specific use case and success criteria, (2) start and end dates (2-6 weeks typical), (3) resources committed by both sides, (4) decision the customer will make at POC end, (5) paid or free, and (6) what conversion looks like (contract structure, timing). Without this document, POCs drift into indefinite trials.

Paid vs free POCs

Paid POCs (typically $5K-$50K, credited toward the contract if they convert) filter for serious buyers and dramatically increase conversion rates — often from 30% (free) to 60-80% (paid). Free POCs make sense for strategic logos or when the product is early and needs learning. Default should be paid; free is the exception.

Success criteria that actually predict conversion

Bad criteria: 'evaluate the product.' Good criteria: 'successfully migrate 3 workflows and demonstrate 40% faster processing versus current tool, with sign-off from Ops Director.' Criteria should be objective, measurable, and small enough to complete in the POC window. Vague criteria produce vague outcomes and no decision.

Running the POC

Assign a Solutions Engineer or CS resource as POC owner. Weekly check-in with both sides. Written progress update after each session. Halfway through: honest assessment call — is the POC on track or are we drifting? Final call: joint review against success criteria and immediate transition to contract conversation (not 'we'll think about it').

Frequently asked questions

How long should a POC run?
2-6 weeks for most SaaS. Under 2 weeks rarely produces enough usage data. Over 6 weeks loses momentum and the customer's exec sponsor stops caring.
What's a healthy POC conversion rate?
60-80% for well-qualified paid POCs. 30-40% for free POCs. Below 30% signals POCs are being offered too easily or success criteria aren't being agreed upfront.
Who owns the POC — sales or CS?
Sales owns commercial (agreement, timeline, close). SE or CS owns technical (implementation, usage). Both are on every check-in. Poor handoffs between them kill POCs.

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