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Home » Articles » What is the average telemarketing cost?

What is the average telemarketing cost?

What is the average telemarketing cost

Telemarketing is not a cheap industry to be in as several costs are associated with it for companies to give the best service possible.

Other businesses have better technology, more agents, and greater overhead costs than others, meaning the overall costs of telemarketing can fluctuate.

This article breaks down the average telemarketing cost and the different factors that affect it.

How much does telemarketing cost?

Telemarketing costs can vary across the board, depending on several factors. Some centers charge by the hour, while others charge by lead.

For example, a telemarketing company in the US might charge an average of $20-$75 per hour. On the other hand, an outsourced one might charge less.

While there is no clear-cut answer to the question, the best place to start would be to look at your budget. List down all the expenses your telemarketing company requires.

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Once you have determined how much you can shell out, you can start allocating different budgets for different facets of the business. Examples of these costs include employees, technology, and overhead.

How much does telemarketing cost
How much does telemarketing cost

Importance of telemarketing cost monitoring

When running a telemarketing company, it is vital to ensure that the funds are being put to good use to get the best value for your money.

All businesses are prone to misusing money, which may ultimately affect operations and put the company in a tough spot. Effective cost management will yield a positive return on investment.

You are also less likely to experience financial strains if you stick to your budget, and you won’t have to go scrambling to pay for things. 

Managing your costs allows your business to stay flexible and adaptable to external changes, such as market conditions or employee churn rates. You can adjust accordingly depending on what your business needs.

Factors that affect telemarketing cost

Telemarketing companies must take into account the following variables to maximize cost:


Where the telemarketers are based is crucial in determining the costs. Some companies based in the US or Canada might have higher costs than those based in Asia, such as the Philippines or India.

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Each location also has a different labor market rate, which comes into play when calculating the telemarketing cost.

Labor market rate

Companies must consider the cost of hiring and training new employees and providing them with the necessary training and technology to complete their objectives.

These expenses are on top of current employees’ salaries, benefits, and insurance, if any. With the labor market rate constantly evolving, companies must adjust accordingly to these new developments to save costs.

Furthermore, it is important to decide how many new telemarketers to hire. Carefully think about the minimum or maximum number of hires that your budget can accommodate.

Call volume

Telemarketing agents take several calls a day, and each person can only handle so much at a time. Determine the volume of calls to take daily to know the number of employees needed.


The telemarketing industry uses various tools and technologies, such as telephones, computers, and software, to accomplish their daily tasks and launch their campaigns. Some technologies, however, are more advanced than others.

Other companies might use more expensive technologies than others, meaning they must shell out more money, especially if they have a lot of employees.

Overhead costs

Telemarketing companies have other expenses to think about other than their employees and technology, such as rent, utilities, and office space.

To minimize these overhead costs, businesses can opt for cheaper rental spaces or transfer to a more cost-effective location. They can then allocate the saved costs to the actual telemarketing side of the business.

Marketing and advertising

Telemarketing is a competitive industry. For a business to gain customers and increase sales over its competitors, it must implement innovative marketing strategies.

Doing so comes with its own hefty costs, already on top of the company’s other expenses. The amount you shell out may vary depending on the size of your business, 

How to calculate telemarketing cost

The cost of telemarketing services is never fixed as the factors listed previously have varying price tags attached.

A good baseline would be to add your hourly agent rate and total cost of technology multiplied by the number of employees.

For example, if you have an hourly rate of $15 and a technology cost of $500 for ten employees, the cost would be $5,150.

Of course, this formula excludes all the additional costs, such as overhead costs, marketing and advertising, and campaign duration, which may vary.

How to calculate telemarketing cost
How to calculate telemarketing cost

Maximizing telemarketing cost

Once you are aware of all the factors that go into telemarketing, you can start planning your budget and maximizing your investment to get the best results.

An ideal telemarketing company yields the highest return on investment if its budget is spent wisely and on the right resources.

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