How Much is the Cost of Telemarketing?

Cost of Telemarketing

Cost of Telemarketing


Many businesses up to this day have seen the significant effect of using telemarketing as a technique for lead generation, marketing and sales, and even to do market research. It has many proven benefitsWhen implemented properly, it has the potential to be an efficient tool to bring your business to success, especially in B2B telemarketing. However, the process and cost of telemarketing make companies choose to outsource this area of their business. It is indeed one of the tasks virtual assistants do for small businesses. Now, the questions are how much does telemarketing cost and what is the best strategy for more cost-efficient telemarketing services? 


Factors Affecting the Price of Telemarketing


Providing the precise cost of telemarketing services is difficult as many factors are affecting it. With this, here are some of the factors:




One of the major factors that may affect the price is the location of the telemarketing service provider. Companies based in Western countries have higher rates than those from the Philippines and India that offer a more competitive price. This is mainly because of the different labor market rates per area. 


Labor Market Rate


Another major factor is the supply and demand of the labor force. If the demand for telemarketing agents is higher than the supply, the labor market rate would be higher. When the supply becomes higher than the demand, expect to pay a lower labor market rate. The expertise of telemarketers also comes under this. 


Call Volume


To determine how many telemarketers you need, you should have an idea of the volume of calls that need to be handled. Take note also that some telemarketing providers rate per call volume.


Number of Seats


This plays a major factor in the cost of telemarketing as through determining this, the service provider can also find out how many agents, equipment, and materials needed for the telemarketing campaign.


Length of Contract

This is also a factor as most telemarketing service providers give a generous discount to companies who sign a longer-term contract with them. 


Cost of Telemarketing Services


As it is difficult to have general pricing because of many factors, we are providing you only with an idea or estimate of the cost of outsourced telemarketing services.


  • Most telemarketing services charge per hour. A telemarketing company based in the U.S. charging per hour has an average cost of around $20 and $75 per hour.
  • An offshore telemarketing service is much cheaper. It charges an average price between $12 and $20 per hour.
  • The average cost of a telemarketing company charging per lead is around $35 and $60 per lead.
  • There are additional charges that may include working on a script and training employees. It has an average cost between $300 and $500.
  • A list of prospects has an average cost of $300 per 1,000 names.


It may look a bit expensive, but these costs of telemarketing outsourcing are cheaper compared to that of putting up your telemarketing team.

Outbound Telemarketing Services Sample Pricing


The following telemarketing rates are estimated costs paid by various businesses to outbound telemarketing companies for outbound telemarketing services:


  • $38 per hour by a North Carolina insurance company needed appointments set
  • $33 per hour by a California company needing direct sales; $1,500 per month by a California business service provider; $3,500 for a 100 number of hours marketing test by a California insurance company
  • $60 per lead set by a Texas mortgage lender
  • $35 per hour by a New York firm needing cold calling
  • $5,900 per month by a credit card company seeking new cardholders
  • $40/hour for an insurance agency needing cold calls in Illinois
  • $45 per hour by a Florida accountant; $5,000 for a pilot marketing campaign by a Florida sales manager
  • $35 per hour by a Colorado telecommunications company
  • $35 per lead by a Michigan bank
  • $40 per lead by a Utah real estate company


As you can see, the price above of outbound call centers greatly depends on how the telemarketers are paid, may it be per hour or lead, and also to the type of telemarketing needed. 


Paying per Lead Vs. per Hour


Paying per lead has its fair share of disadvantages. It includes the fact that it can encourage counterproductive behavior in telemarketers, making them focused on easy wins. It can sometimes compromise the value of calls instead of making the most out of the opportunity to be in contact with potential clients.  


On the other hand, hourly pay can help make every interaction count, not only to those who provide an immediate result. Moreover, leads that are BANT (Budget, Authority, Need, and Timescale) qualified are of higher quality and commonly result in more valuable outcomes. 


In addition, focusing on the perception that telemarketing has a higher cost per lead compared to other marketing channels may lead to sacrificing quality over quantity. Remember that the true return on investment is when sales from these leads are closed. One lead may convert into a one-time sale while the other may end into a genuine business partnership that could last for a long time. 


Strategy for Cost-Efficient Telemarketing Services


Outsourcing your telemarketing to a trusted telemarketer is a great strategy that can offer you quality services at a much lower cost. It is a much better choice when planning to run a telemarketing campaign as it aims to help your business grow. Outsourcing has many benefits, which includes the following:


Cost Savings


Telemarketing is still an effective tool today to generate leads and increase sales. You do not need to prepare much to start a telemarketing campaign if you choose to outsource. Outsourcing helps you have a team of professional and well-trained telemarketers hassle-free and at a fraction of the cost of telemarketing. The different types of payment also give you the option to choose what best fits your business.




One of the best benefits of outsourcing your telemarketing is its versatility. Service providers have flexible pricing plans. You get to customize your plan based on your needs. One great example of this is if your business is seasonal, you can choose to use the services only when you need it. You can switch it on and off based on your contract as you require.


Fast Return on Investment


Through outsourcing, you can maximize your outsourced services as third parties guarantee to deliver a higher return on investment than that of an in-house team. They tend to be more productive and goal-oriented. 


Every business would want to extract the most value from their investment in the area of sales and marketing. You must find the right telemarketers for your business needs as if you are too focused on finding the cheapest service provider, you might end up compromising the quality of your telemarketing. Do not only consider the cost of telemarketing but look at the quality in line with the quantity as well. The bottom line here is that telemarketing has the potential to bring great value to your business if done correctly and properly. It can be a much more cost-efficient marketing strategy more than you ever thought.



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