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Home | Blog | How Much is the Cost of Telemarketing?

How Much is the Cost of Telemarketing?

By Magellan Solutions

Updated on May 31, 2024

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In today’s fast-paced business world, telemarketing isn’t just another tool in your arsenal; it’s a game-changer that can transform how you generate leads, market your products, boost sales, and conduct market research. Its proven benefits have left an indelible mark on businesses, propelling them to new heights of success.


However, the intricacies and costs associated with telemarketing often lead companies to explore external solutions, like enlisting virtual assistants for support. So, here’s the big question: What’s the real price of telemarketing, and how can you harness cost-effective strategies to supercharge your telemarketing services?


Join us on an exciting journey as we unveil the secrets that will reshape your telemarketing game and help your business reach new heights of success.


Factors Affecting the Price of Telemarketing

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

1. Location

One of the significant 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, which offer a more competitive price. This is mainly because of the different labor market rates per area.

2. Labor Market Rate

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

3. Call Volume

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


4. Number of Seats

This plays a significant factor in the cost of telemarketing. Through the number of seats, the service provider can also find out how many agents, equipment, and materials are needed for the telemarketing campaign.


5. 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

There are many other factors to consider in estimating the cost of telemarketing services. Below, we provide a general 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.
  • Additional charges 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 outsourcing costs are cheaper thansetting up your telemarketing team from scratch.

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 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 that it can encourage counterproductive behavior in telemarketers, focusing them 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 than other marketing channels may lead to sacrificing quality over quantity. Remember that the actual return on investment is when sales from these leads are closed. One lead may convert into a one-time deal, while the other may end into a genuine business partnership that could last for a long time.


Competitive Growth with Magellan Outsourcing Solutions!


Ready to elevate your telemarketing strategy and maximize your ROI? Reach out to Magellan Solutions now!


Don’t miss your chance to uncover the true cost of telemarketing and unlock cost-effective strategies that drive results. Fill-up our form below to get started on your path to telemarketing success!

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      How Much is the Cost of Telemarketing?

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