How do telemarketing companies charge for their services.
Do any offer commission only telemarketing? This is a question that many businesses ask.
How much does it cost and the answer is that each agency works differently.
In the UK there are over 600 telemarketing companies and each one charges differently for their services.
This is not a product that can be bought off the shelf and sold at a discount via certain sources. However it is a marketing service that is carried out by professional businesses.
As such, telemarketing prices will vary depending on the model the agency is working to. Consider the various UK pricing models to understand how do telemarketing companies charge:
Most agencies (around 70%) tend to work to this model, whereby they will charge per day worked. This would involve 1 person making calls to your target audience.
During the day it would involve any communication with you, reporting, e-mailing prospects as well as calling.
Rates do vary from agency to agency so it may be good to get quotes from different calling companies and comparing them.
Some agencies (around 25%) charge on a monthly basis for their services. This would involve them either working a set number of hours as agreed.
This can have benefits, as follow ups can be easier to manage with clients (rather than only calling on certain days).
Again, rates do vary from agency to agency, and would be based on the amount of time dedicated to you.
A few agencies do charge in this way as it is easy to control.
Typically they would agree a trial to ‘test the water’ and get the campaign running – then it is a case of booking a set number of hours per day/week.
This is a good route for a small client that cannot afford day or monthly rates or employing someone themselves a pay per hour route offers more control and options.
There are around 10 agencies in the UK that are offering a pay per appointment service (as of February 2011) and this route seems to be slowly growing.
Pay per appointment is more results based than the other options above, as you only pay when appointments are booked with prospects.
Of course closing the deal and generating the revenue is in your hands, however you are paying more on a results basis, which many seem to prefer as there is less risk.
This is asked about regularly; however no UK company offers commission only telemarketing.
The reason is that many companies that ask are startup companies that do not have the funds to invest into their marketing.
Sometimes these companies will push an idea only to find that it does not work. If an agency was to work commission only for the startup they would loose out and the startup would come up with another idea.
Companies have their costs (staff, phone costs, business costs etc.) so need to charge a set fee in order to cover their own costs.
Most telemarketing companies will have links to data houses, and even have their own telemarketing data from historical campaign from previous customers.
If you require data, a telemarketing company may well charge you to buy data, or to use their databases for your campaign.
The alternative is you purchasing marketing data and then giving the telemarketing agency access to it.
This is how do telemarketing companies charge for their services.