The Costs Of Telemarketing

UK Telemarketing Companies

There are over 600 telemarketing companies around the UK all offering promises of great services, quick results and

value for money.

There are 3 different kinds of telemarketing company:

Outbound Calling - Where calls are made to prospects and clients

Inbound Calling - Where calls are received (like a call center or secretarial service)

Both - Some telemarketing companies offer both (business is tough so they will tackle anything).

Most of these telemarketing companies are small, with less than 10 staff. Most are set up by ex telemarketers that

have decided to go it alone and set up businesses for themselves.

Any new business has three objectives:

To bring on new clients

To offer a good service

To generate revenue

Any new telemarketing company needs to generate lots of profit in order to afford staff costs, rent costs, expenditures and additional things (such as houses, cars, holiday's etc.)

that the owner requires. All this needs to be taken into account when discussing the price of the campaign.

Telemarketing Charging Ranges

There are a few different charging models to calling, most companies conform to per day, but there are other

structures.

Per Day

Calling companies range from freelancers that offer a 1 man band approach to lead generation and may charge £150 per day (plus VAT @ 20%) up to larger established

agencies that charge £600 per day (plus VAT) and maybe a setup fee.

Per Month

Some calling companies charge a monthly retainer for ongoing calling which could be £1,000 per month (plus

VAT) up to £6,000 per month (plus VAT) for more targeted work or using larger numbers of staff.

Per Call

Smaller calling companies offer a cost per call route (maybe 50p + VAT) which is a bit more flexible to smaller businesses. Calls that are not connected are not normally charged, so smaller businesses can see and track progress

a lot closer to assess how results are looking.

Generally the smaller the calling business, the cheaper they are, as they have less overheads. This could mean less

experience in telemarketing, but could mean a more personalised service.

Why Telemarketing Costs Vary

All calling companies have different charging structures based on what they feel they can get away with. This is the

nature of sales, cost is not about the value, but what the seller can get away with. Similar to petrol prices these days, garages charge £1.40 per liter because people are

happy to pay that. For a days calling, is people are happy to pay £400 and feel they are getting value for it, then that

is what would be charged (maybe a little more).

The most popular form of charging for calling is a day rate (sometimes a monthly rate) for both inbound and outbound calling on the basis that it can be easily

invoiced.

Most telemarketing agencies that are new will start on a lower day rate (say £150 + VAT) and then increase it once

they have a regular number of customers.

Tips For Negotiating Costs And Rates

One of the most important factors to consider during 2012 is results, cold calling and appointment making this year will be difficult and unfortunately the customer may be

stuck with a big bill for calling work.

Work is slow and many businesses are reluctant to buy without an absolute need; therefore pushing for sort of

results based work or guarantees is wise.

Ask for guarantees. Many telemarketing agencies will shy away from results based calling; however times are

changing and some sort of guarantees are needed to avoid high day rates and no results.

Shop around different agencies, there are lots of calling companies around and all are hungry for business.

Ask for a trial before committing to a contract. Many agencies now offer 2-3 days of free calling to prove their

worth and free trails are quite common.

Times are hard for all businesses and 2012 will be a make of break year for a lot of companies across many industries

(retail, engineering, medical etc.) due to changing economics, government cutbacks and lower overseas

prices.

For UK businesses, finding a reliable telemarketing company that can produce results is important; for calling companies, the need to go the extra mile and put in the

extra work to satisfy UK companies is necessary.

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