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Telemarketing Prices - 2017 Guide

Telemarketing prices + Costs

Telemarketing Prices Overview

Finding the right telemarketing company for your business can be a challenging task when you are not exactly sure what services are available and how much they cost. Prices themselves can vary by company, campaign and end goal, so it is always best to do your research first.

To help you maximise ROI, below you’ll find a guide to telemarketing services for SMEs, with details of how much you should expect to pay for this type of service.

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Telemarketing Costs & Pricing Structures

Pricing structures and costs vary between telemarketing companies. Detailed below is a breakdown of the costs and methods of payment that you can expect to encounter:

Set Up Fee

This is a fee commonly charged by telemarketing companies and you can expect to pay a minimum of £250. The Set Up Fee covers the cost of product or service training for the agencies staff, so they know how to sell to your customers. It also covers the cost of any other necessary training, script-writing, and the development of the sales pitch required.

Campaign Management Fee

More of an administrative cost, you can expect to pay a minimum top-up fee of around £50 a month to ensure the smooth running of your campaigns. This cost is an ongoing one for the life of the project.

Cost of Data Fee

If you aren’t providing a call list or contact data to your chosen telemarketing agency, then you can expect to pay a data acquisition fee. This charge covers the amount of time needed by the agency to cold call large numbers of leads and then identify those prospects who might be interested in your service or product. This will take place before your telemarketing campaign begins and may actually delay the start of your project.

To cut the cost of your telemarketing campaign and avoid additional data-gathering charges, you should keep your contact lists up to data with relevant CRM systems and then supply these pre-prepared contact lists to the agency to use.

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Pricing Plan – Pay per Hour/Day

Paying by the hour allows you to plan your budget effectively as costs are fixed. The rate will generally fall between £10 - £30 per hour per operative, and varies according to your sector and the complexity of the calls. This method of payment is ideal when targeting large groups of targets, with no specific niche in mind, i.e. during a lead generation campaign for example. The cost of the calls will be included in this price.

However, you should also note that paying by the hour/day can quickly become very expensive and you will be required to pay up even if the desired number of leads haven’t been generated.

Pricing Plan – Pay per Lead/Appointment

When you agree to pay by appointment, you can expect to spend in the range of £20 - £150 per lead, depending on your industry and the nature of the calls. This method of payment offers an incentive to the telemarketing company to up their performance – an incentive that is not there when you pay per hour or per day.

This is the most cost-effective method of payment as it incentivizes the work for the agency and protects you if the results are below expectations.

Pricing Plan – Pay per Campaign

Paying the cost of a whole campaign up-front is sometimes offered by telemarketing companies to new customers. It acts as protection for the agency, who ensure they will get paid, but it also encourages new clients to stick the course regardless of the results. Likewise, paying for a whole campaign up front may result in a cheaper-than-normal price if the agency is trying to retain your business in the future. This initial campaign will also be of a fixed length

Minimising Telemarketing Overheads

Telemarketing isn’t cheap and with so many charges and methods of payment, costs can quickly spiral for the unwary business. Likewise SMEs may have a tighter cash-flow and seek to keep costs down. Here are a few things you can do to minimise your overheads:

  • Source your own data - If you find your own leads and provide contact lists up front, then the agency can get on with calling people straight away. If not, you’ll be charged extra for the necessary lead generation.
  • Work locally - Although home to a large number of telemarketing agencies, London is very expensive and as such this is reflected in telemarketing costs. Try to research local and regional telemarketing agencies that will have lower overhead costs and may be able to tailor their costs and service plans a bit more.
  • Close deals in-house - If you feel your team is up to it, then there is no reason why you can’t let the telemarketing agency generate the leads before you close the min-house.

Next Steps

If you would like more help to find the best telemarketing services for your business, all you have to do is fill out the form at the top of this page. Expert Market UK will be able to narrow down your search by comparing prices and services from top telemarketing companies.