This isn't a 100% conversion rate. You're investing a lot of time and effort on this and not getting a financial return. It may well help you with prospecting and could even help get you to your initial sale but please see it for the exercise that it is, which is market research, not sales.
I do hope it all works out well for you and that you get some very valuable feedback.
I feel like the first bit is an argument over semantics. Does conversion mean I sold something? Does it mean I got someone to perform a desired action?
You're right on the next part. It is a significant time and effort investment. The theory is that I'm saving myself money and time spent developing software no one will use. And the Zen Master said, "We'll See."
I see your point but I'd say it's more than just semantics. Semantics would be a market research versus direct marketing issue. This is a distinction between Sales and Marketing, and an important one. Market research is not necessarily lead generation and won't pay the bills.
Conversion in a Sales sense means that you've sold something. In a marketing sense it means that your goal has been reached (which may also be selling something, but could be an action).
For getting an MVP out I think this approach could work really well. I just wouldn't advocate it as a sales strategy not because it doesn't directly involve selling but because it takes time away from selling.
Bear in mind that you don't need the product to be ready to close your first sale, as long as the lead times are reasonable.
Yes, in the context of cold-calling, that's exactly what it means.
Generally, it means achieving your goal. And while in 100% of your phonecalls you are well on your way of getting to that goal, your goal is getting them to pay for your services, not allowing you to give them another sales-pitch (which is what you achieved).
My goal was learning through interviews. I don't have anything to sell. Perhaps in an abstract sense I hope to sell them at some point in the future. I used 'conversion' because I converted them from cold prospects for interviews to interviews.
I do hope it all works out well for you and that you get some very valuable feedback.