“Let’s start with a PoC” can mean a two-week demo, a six-month unpaid project, or a real commercial pilot. In India, founders often discover which one it is only after they have staffed it.
A proof of concept without a commercial frame is a free consulting engagement with a hopeful ending.
What is the short answer on running a paid PoC in India?
Run it as a fixed-scope, fixed-duration, paid engagement of roughly 6 to 12 weeks, with written success criteria agreed before work starts, a named business sponsor, and a pre-agreed commercial path if the criteria are met. The fee need not be large. Its purpose is to prove the buyer is serious and to secure a budget line.
These durations are a working guide from how B2B pilots commonly run, not a fixed standard. Adjust them to your product’s integration depth.
Why should a PoC be paid?
An unpaid PoC attracts curiosity, not commitment. A paid one moves the engagement into the buyer’s budget process, which forces a sponsor, a purchase order and a defined owner. It also protects your team from open-ended effort.
If a buyer cannot approve even a modest fee, that is useful information about how hard the full contract will be.
What does a standard PoC timeline and milestone framework look like?
| Phase | Typical duration | What happens | Milestone / exit |
|---|---|---|---|
| 0. Qualification | 1 to 2 weeks | Confirm sponsor, budget, problem and decision process | Signed PoC order and scope note |
| 1. Setup | 1 to 2 weeks | Access, data, environment, security review of the PoC setup | Environment live, baseline metrics recorded |
| 2. Execution | 3 to 6 weeks | Run the agreed use case with real users or data | Mid-point review held, issues logged |
| 3. Evaluation | 1 week | Measure results against success criteria | Joint results document signed off |
| 4. Decision | 1 to 2 weeks | Commercial proposal, procurement and legal start | Go, no-go or extend decision in writing |
What must be agreed before the PoC starts?
Success criteria that are measurable
“Show that the platform works” is not a criterion. “Reduce manual reconciliation time for this team by an agreed percentage on this dataset” is. Write two to four criteria, each with a baseline, a target and a measurement method.
Scope boundaries
- Which use case, which business unit and which systems are in scope.
- What is explicitly out of scope, so extra requests become a conversation rather than a surprise.
- What data the customer will provide, and by when.
Roles and availability
Name one business sponsor, one technical contact and one decision-maker. Most PoCs stall because the customer’s people are busy, not because the product fails. Write customer response times into the plan.
How do you price a PoC?
Three common models work in practice:
- Fixed fee, credited: a flat fee that is credited against the first-year contract if the customer proceeds.
- Fixed fee, not credited: a smaller, clean fee for effort spent. Simpler for procurement, less attractive to the buyer.
- Milestone-based: part payment at start and part at evaluation sign-off.
The credit model is often easiest to sell internally, because the buyer sees the PoC as part of the purchase rather than a cost on top of it.
What should the conversion path look like?
Agree the commercial template at the start. The PoC order can state the indicative annual price, term and scope that will apply if the success criteria are met. This does not bind the buyer, but it keeps a successful PoC from restarting price negotiation from zero.
Which warning signs should make you pause?
- No named sponsor, or a sponsor who cannot explain where budget will come from.
- Success criteria that change after kick-off.
- Requests to add systems or teams mid-PoC without extending the timeline or fee.
- Delays in data or access from the customer side that are not reflected in the schedule.
When any of these appear, reset the plan in writing, extend the timeline and, if needed, the fee. Keep the tone collaborative, but keep the paper trail.
Frequently Asked Questions
How long should a proof of concept last in India?
Most B2B software PoCs work best at roughly 6 to 12 weeks, depending on integration depth. Shorter than that, you rarely generate enough usage data. Longer, and priorities at the customer tend to shift. Fix the end date at the start and treat extensions as a formal decision.
Should I do a free PoC to win a big Indian enterprise logo?
Only as a conscious exception with strict boundaries, such as a short time-box, narrow scope and written conversion terms. A free PoC with open scope often turns into unpaid implementation. If free is unavoidable, ask for something in return, such as an executive sponsor, a reference or a purchase intent letter.
What happens if the PoC succeeds but procurement is slow?
Agree the commercial path and procurement steps during the PoC itself, not after it. Start security, legal and vendor onboarding checks in parallel with the evaluation phase so the decision phase does not begin a second six-month process.
Conclusion
A paid PoC is a commercial instrument, not a technical favour. Fix scope, time, success criteria and conversion terms before anyone logs in, and use the evaluation to move into procurement quickly while the sponsor’s enthusiasm is high.
If you are building a B2B company for Indian enterprise buyers, join The Builders Club community to compare notes with other founders and CXOs who are working through the same problems.
