Most companies skip straight to Type 2. It's the "real" SOC 2, right? Type 1 is just not worth it.
We used to think that way too. We've changed our mind.
Here's why we now recommend Type 1 for first-timers, even though it's technically optional.
Type 2 has an observation period - usually 3-6 months where the auditor watches whether you actually follow your controls. If something's broken, you don't find out until the end. Then you're scrambling, or worse, failing the audit.
Type 1 is a snapshot. The auditor reviews your security program as it exists today: policies, controls, documentation. They tell you what's solid and what needs work - before the clock starts on Type 2.
We've seen companies discover during Type 1 that their access review process was undocumented, or their vendor management was a spreadsheet that hadn't been touched in 8 months. Better to catch that now than 4 months into a Type 2 observation period.
Here's the reality: your sales team is fielding security questionnaires right now. Prospects are asking "Are you SOC 2 compliant?" and your team is dancing around the answer.
A Type 1 report gives you something concrete. You can say "Yes, we completed our SOC 2 Type 1 and we're currently in our Type 2 observation period." That's a real answer. It shows you're serious, you've been audited, and you're on track.
For companies stuck in long sales cycles with enterprise buyers, that's often the difference between staying in the deal and getting cut from the shortlist.
Once you have a Type 1 report, you can confidently launch a Trust Center on your website. That's a public-facing page that shows prospects your security posture before they even ask.
Instead of waiting 6-9 months for Type 2 to finish, you're establishing credibility proactively. Prospects see you take security seriously. Your sales team can point to it in early conversations. Security questionnaires get shorter because half the answers are already public.
It shifts the dynamic from "prove you're secure" to "here's our security program - what questions do you have?"
Audits aren't just pass/fail exams. Your auditor is someone you'll work with year after year. Type 1 lets you establish that relationship in lower-stakes conditions.
You learn how they communicate, what evidence formats they prefer, where they tend to dig deeper. They learn your environment, your tech stack, your team. When Type 2 comes around, you're not strangers - you're picking up where you left off.
Type 1 audits typically run $2,500-7,500 for SMBs with fewer than 50 employees. That's a fraction of what you'd spend recovering from a failed Type 2 or losing a deal because you couldn't prove your security posture.
Think of it as risk reduction, not an extra expense.
To be fair, Type 1 isn't always necessary. If you've been through SOC 2 before at another company and know the process cold, or if your security program is already mature and well-documented, you might be fine going straight to Type 2.
But if this is your first rodeo, or if you're not 100% confident in your documentation, Type 1 is cheap insurance.
Type 1 isn't the "lesser" SOC 2. It's a validation checkpoint. You catch problems early, give your sales team something to work with, launch your Trust Center, and build auditor rapport before the real observation period begins.
For first-timers, that's worth the investment.
Addresses SOC 2's value proposition, complementing the new post's 'sales enabler' theme.
Deep dive into SOC 2 Type 2 reports, a key concept introduced in the new post.
Offers a practical roadmap for automating SOC 2 compliance, supporting the new post's framework.
Compares specific GRC automation platforms (Drata, Vanta) mentioned in the new post.
Foundational guide to SOC 2 Trust Services Criteria, essential for understanding controls.