Telemarketing Bureaus

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 2,600 telemarketing bureaus in the US operate call centers that initiate and receive communications via telephone, email, fax, or other medium on behalf of their clients. Services provided include promoting or selling a client’s products or services, taking orders, soliciting donations, and handling customer service inquiries.

Privacy Regulations

In response to concerns about telephone scams and consumer complaints about unwanted telemarketing calls, Congress has enacted regulations governing the activities of telemarketing bureaus.

Competition From Offshore Centers

US telemarketing bureaus compete with lower cost services in the Philippines, India, and other low-wage countries.

Industry size & Structure

The average telemarketing bureau operates a single location, has 163 employees, and generates $7-8 million in annual revenue.

    • The telemarketing bureau industry in the US consists of about 2,600 firms operating about 4,000 centers with 436,200 employees and $20 billion in annual revenue.
    • The industry is concentrated, as the largest 50 firms account for 55% of industry revenue.
    • Large US telemarketing firms include The Results Companies and USA800, DialAmerica, VXI Global Solutions, and American Customer Care.
    • The states with the largest number of telemarketing bureaus are Florida, California, Texas, New York, Ohio, and Arizona.
                                    Industry Forecast
                                    Telemarketing Bureaus Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    Apr 19, 2022 - Emergency Orders Lifted in More Than Half of US States
                                    • Telemarketing is restricted or prohibited in many states during a state of emergency declaration. Telemarketing firms may resume operations in states that are no longer under states of emergency. As of April 11, states of emergency were still in place in Arizona, California, Connecticut, Georgia, Hawaii, Idaho, Illinois, Kansas, Kentucky, Nevada, New Mexico, New York, North Carolina, Oregon, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wyoming.
                                    • Concerns over telemarketing fraud are increasing with new scams revealed daily, including ones that make false claims about cures for COVID-19. Some of the latest scams include offers for COVID-19 test kits, fake contact tracers, and phony vaccination cards. In many cases, scammers offer such things in exchange for personal information. The FCC has launched the COVID-19 Consumer Warnings and Safety Tips webpage to keep consumers informed about the scams. Voice over IP (VoIP) service providers may restrict the routing of telemarketing bureaus as the FTC cracks down on scam robocalling.
                                    • Consumer complaints to the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) about unwanted telephone calls and text messages are rising again. Telemarketing calls are prohibited during states of emergency, and now that they have been lifted in more than half of US states, telemarketing calls have resumed. Between October 2021 and December 2021, complaints to the FCC and FTC declined steadily but have since crept up again. Between December 2021 and March 2022, complaints increased by 36%. July 2021 was the first full month of implementing the FCC’s new anti-caller ID spoofing framework called STIR/SHAKEN, which requires telecoms to police illegal robocalls better. In March 2022, 24% of robocalls were for telemarketing, and 33% were scams, according to YouMail.
                                    • Firms that reopen offices may put safety measures in place, such as placing workers’ desks further apart and installing partitions between workstations. Workplaces that require talking all day pose particular challenges. However, Hawaii, the final holdout among states with indoor masking mandates, let its mask mandate expire on March 25. The Centers for Disease Control and Prevention still recommends that masks be worn in areas of substantial or high transmission, regardless of vaccination status.
                                    • Public health officials in some communities have reported their contact tracing efforts have been hurt by people’s tendency to not answer calls from unknown numbers due to spam and telemarketing calls. Contact tracing helps reduce the spread of COVID-19 by alerting people who have tested positive and any other people who have had contact with them.
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