Outsourcing the skills of an established third-party telemarketing company is key to achieving the telesales results you’re after, especially when they have industry-specific experience and positive client testimonials to back them up.
But, when it comes to paying a telemarketing partner for their work, is there a pricing model that will maximise your return? While comparing telemarketing companies, you’re likely to receive telemarketing quotes quantified on a day rate or, less commonly, a cost per lead basis. To help you weigh up the options, we’ve summed up the pros and cons of each below.
Cost per lead telemarketing
Let’s take a closer look at cost per lead telemarketing first. Fewer telemarketing companies use this pricing model these days, but it can seem tempting if you come across one who does. With a cost per lead campaign, your business only pays for the leads it receives from the telemarketing company. Sounds great, right? After all, why would you want to pay a telemarketing partner for their time when you might not get the leads you need?
Cost per lead telemarketing can appear to be way to get results fast, but there are several important catches to this proposition, including professional approach. Cost per lead telemarketing companies are incentivised to identify as many leads as possible, which can all-too-often result in pushy, or even aggressive, telesales tactics. When your telemarketing partner is working on your behalf, this type of campaign can alienate both existing and potential customers, causing damage to your brand’s reputation that’s hard to repair.
What’s more, simply receiving leads out of context can be a false economy. A handful of leads is one thing, but what if your telemarketing partner contacted your entire target market to get them? Without additional insight, you won’t know if there is a disconnect with the positioning of your product, service or your marketing message, all of which can be refined with the full picture. Rather than building relationships, cost per lead companies will often reject leads that aren’t immediately sales-ready, meaning you lose potentially lucrative information, and prospects that could be nurtured with more time and effort.
Thirdly, since cost per lead telemarketing companies tend to recycle their leads, each of those sales prospects you’ve paid for may also be sold on to your competitors. There have also been cases of cost per lead companies absorbing client databases for use on other campaigns; all the more reason to avoid this type of telemarketing pricing model.
Day rate telemarketing
Now for day rate telemarketing. This pricing model is built on a pre-agreed rate per day of the campaign; you won’t pay any more or any less depending on the results.
At first glance, it may seem that a day rate pricing model offers less potential return for your investment. Paying a day rate for telemarketing involves more of an initial outlay and can take longer to bear fruit but, as we mentioned above, the instant leads promised by cost per lead campaigns are rarely what they’re cracked up to be.
Instead, day rate telemarketing is far more likely to achieve the high-quality, targeted leads you need; leads that fit the criteria your business establishes with your telemarketing partner from the outset. This kind of telemarketing company will spend time getting to know your business, your telesales objectives and how they fit into your wider marketing strategy, before gathering valuable information from your prospects in an ethical and professional way. The result is a steady pipeline of carefully-nurtured, qualified leads with a higher probability of conversion, rather than a list of leads for leads’ sake.
You’ll receive more than just the lead data too; telemarketing companies that use day rates will keep you informed of progress at every step, with detailed reports that reveal opportunities for campaign improvement, prospect pain points that your sales team can offer solutions to, and contextual business intelligence that enriches your understanding of your customers.
Compare telemarketing day rate quotes now
At Telemarketing Companies, we only work with telemarketing providers who use day rate pricing models, because we know that’s how our clients will get the best telesales results. Each of the telemarketing companies we represent operates with skill, care and transparency, so that your business benefits from the highest-quality leads possible. Fill in our online form to start comparing telemarketing quotes today.