Typical telemarketing fees

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TYPICAL TELEMARKETING FEES

The fees an agency charges can vary greatly from a ‘pay-by-appointment’ basis to a day rate of calling and various alternatives in between. Choosing the right agency should be based on the quality of the agency selected but also the budget available to undertake a telemarketing campaign. Below is an outline of the main ways telemarketing agencies charge for their services:

Pay-by-Appointment: This is a popular method used by agencies and is sometime referred to as ‘risk and reward’. This ensures companies only pay for meetings that have been arranged and do not pay should the telemarketing agency not secure any leads or meetings. Initially this way of working is appealing but companies will often find the meetings arranged are of a very poor quality as it’s in the best interest of the agency to work on a quantity over quality basis.
Pay by Sale Commission: This method may be used by agencies working with companies that have large order values. Often an agency will not be paid for any work undertaken unless the client closes business from a lead or meeting the agency generated. The quality of appointments will be of a higher caliber but the agency will normally request to see the sales figures for the company and the average ‘closing’ rate they work on to ensure it is viable. Rates can vary from 5% - 20% depending on the order value.
Day Rate: This method is the preferred method for most professional telemarketing agencies. Clients should expect a higher caliber of meetings and leads but to also gain market intelligence through the calling. There is no limit to the number of meetings an agency will arrange and the utmost care is normally taken to ensure they are fully qualified.

Jessica Burke is Managing Director for Phone Intelligence, to begin the first steps toward growing your business through outsourced telemarketing, please call +44 208 958 5695 or email info@phoneintelligence.com.

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