Telemarketing Bureaus
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 2,500 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 152 employees, and generates $9-10 million in annual revenue.
- The telemarketing bureau industry in the US consists of about 2,400 firms operating about 3,700 centers with 366,000 employees and $23 billion in annual revenue.
- The industry is concentrated, as the largest 50 firms account for 55% of industry revenue.
- Large US telemarketing firms include ResultsCX, Aucera (formerly 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
Recent Developments
Jun 4, 2024 - Steady but Slower Industry Growth
- The telemarketing industry is expected to experience slower but steady sales growth in the coming years. The industry’s year-over-year sales increased by 7.4% in 2021, 4.2% in 2022, and 3.9% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to drop to 2.3% in 2024, then rise nearly 3% in 2025. The industry will then see flat but steady average annual growth of about 3.6% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- In mid-May, the Consumer Financial Protection Bureau (CFPB) announced a consent order with a telemarketing company for allegedly violating the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act, according to JD Supra. The CFPB alleged that the company used deceptive telemarketing practices to offer student loan debt relief services. The CFPB said the company misrepresented itself as an affiliate of the US Department of Education and violated the TSR by charging customers advance fees for services. As part of the settlement with the CFPB, the telemarketing company agreed to cease all operations and pay a $400,000 penalty to the CFPB victims relief fund. As part of the consent order, the telemarketing company did not admit or deny the allegations.
- In May 2024, the number of robocalls in the US increased month-over-month by 1.7% to 4.5 billion, according to YouMail. On average, US consumers received more than 144 million robocalls per day in May. The top five cities for robocalls in May were Atlanta, Dallas, Chicago, Houston, and New York. In May, 34% of robocalls were for telemarketing, 25% were alerts and reminders, 23% were scams, and 18% were payment reminders.
- In February, the Federal Communications Commission (FCC) outlawed unsolicited robocalls with AI-generated voices, according to The Wall Street Journal. The FCC said unsolicited AI-generated calls were illegal under the 1991 Telephone Consumer Protection Act. To be legal, such calls would need the prior consent of those being called. The ruling came amid the agency’s investigation of a company in Texas that deployed robocalls in New Hampshire using an AI-enabled imitation of President Biden’s voice that urged people not to vote in the state’s primary. Firms that violate the law can be subject to fines of up to $23,000 per call.
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