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Telemarketing Prices - 2017 Guide

Telemarketing prices + Costs

Telemarketing Prices Overview

Finding the right telemarketing company for your business is a challenge. You may not know what services are available or how much they cost.

To help you maximise ROI, the following information will guide you on telemarketing services for SMEs. This includes details of how much you should expect to pay for this type of service.

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Telemarketing Costs & Pricing Structures

Costs and pricing structures vary across telemarketing companies. These will also differ based on the type of campaign and the end goal.

Detailed below is a breakdown of the costs and payment methods that you can expect to encounter:

Set-Up Fee

This is a commonly charged fee, starting from a minimum of £250. The set-up fee covers the cost of the product/ service training for the agency staff. This ensures that they fully understand how to sell to your customers. The fee also covers costs of other necessary training, script-writing, and sales pitch development.

Campaign Management Fee

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

Cost of Data Fee

This will apply if you aren't providing a call list or contact data to your chosen agency. The data acquisition charge covers the amount of agency time needed to cold call large numbers of leads and then identify those who might be interested in your product/ service. This will take place before your telemarketing campaign begins and may therefore delay the start of your project.

You can cut the cost of your telemarketing campaign and avoid additional data-gathering charges. Keep your contact lists up to date with relevant CRM systems and then supply these to the agency.

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Pricing Plan – Pay per Hour/Day

Paying by the hour allows you to plan your budget effectively. The rate will generally range from £10 - £30 per hour per operative. This does, however, vary according to your sector and the call complexity. This method is ideal when targeting large groups, with no specific niche in mind. The pricing plan will include the cost of the call.

Despite this, you should note that this method can quickly become very expensive. You will have to pay even if they haven't managed to generate the desired number of leads.

Pricing Plan – Pay per Lead/Appointment

Under this agreement, you can expect to pay between £20 - £150 per lead. This will ultimately depend on the industry and nature of the calls. This payment method offers the telemarketing company an incentive to heighten their performance. It is not the same when you pay per hour or day.

The pay per lead method is the most cost-effective. The lead price range encourages performance though you can protect yourself if results are below expectations.

Pricing Plan – Pay per Campaign

Paying the cost of a whole campaign up-front is sometimes offered to new customers. This protects the agency as they get paid, and encourages new clients to stick the course despite the results. This option may lead to cheaper costs if the agency wishes to retain business in the future. This initial campaign will also be of a fixed length.

Minimising Telemarketing Overheads

With so many charges and payment methods, costs can quickly spiral for the unwary business. SMEs may have tighter cash-flow and seek to keep their costs down. The following will help you minimise your overheads:

  • Source your own data - find your own leads and provide contact lists up front so that the agency can call people straight away. If you don't do this, you’ll pay extra for the necessary lead generation.
  • Work locally - undertake telemarketing research by looking in to local and regional telemarketing agencies. These will have lower overhead costs and they may be able to tailor costs and service plans to a greater extent.
  • Close deals in-house - provided your team is up to it, let the telemarketing agency generate the leads before you close them in-house.

Next Steps

If you would like to find the best telemarketing services for your business, then 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.