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 2,600 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

                                    Recent Developments

                                    Oct 28, 2022 - FCC Advances Plan to Block Spam Texts
                                    • The Federal Communications Commission (FCC) in September released a plan that would require mobile carriers to block a wide range of illegal text messages. Building on its efforts to stop the growing problem of illegal and unwanted robocalls, the agency’s notice of proposed rulemaking (NPRM) specifically would require mobile wireless providers to block texts, at the network level, that purport to be from invalid, unallocated, or unused numbers, and numbers on a Do-Not-Originate (DNO) list, which "are highly likely to be illegal," the FCC said. According to the NPRM, the FCC received approximately 14,000 consumer complaints about unwanted text messages, representing an almost 146% increase from the number of complaints the year before. Complaints rose to 15,300 in 2021, and 8,500 in the first six months of 2022. The agency still needs to adopt final rules.
                                    • The Federal Communications Commission (FCC) in October 2022 threatened to block calls from voice service providers that have yet to take meaningful action against illegal robocalls, The Verge reports. The FCC said it was beginning the process to remove providers from the agency’s Robocall Mitigation Database for failing to fully implement STIR/SHAKEN anti-robocall protocols into their networks. “If a provider doesn’t meet its obligations under the law, it now faces expulsion from America’s phone networks. Fines alone aren’t enough, ”FCC Chairwoman Jessica Rosenworcel said in a statement. “Providers that don’t follow our rules and make it easy to scam consumers will now face swift consequences.” The current FCC crackdown is one of the most significant actions the agency has taken to combat illegal robocalls since the STIR/SHAKEN requirements went into effect in 2020.
                                    • More firms are finding themselves the target of lawsuits after plaintiffs allege companies have violated the Florida Telephone Solicitation Act (FTSA), which went into effect in July 2021. The FTSA prohibits automated calls or tests to consumers without their prior consent. In September, a motion to dismiss a class action suit against SmileDirectClub LLC was denied in a Southern District of Florida court. The plaintiff in the case claims SmileDirectClub sent unsolicited text messages to him and other Florida residents without their consent. Also in September, Grocery Delivery E-Services USA, Inc. (which does business as HelloFresh) was the subject of a proposed class action suit under the FTSA, with the plaintiff alleging the company sent unsolicited texts.
                                    • In late August, the Federal Trade Commission announced the fees telemarketers must pay to access phone numbers on the National Do Not Call (DNC) Registry will increase for fiscal year 2023, which begins on October 1, 2022. Telemarketers that call consumers in the US are required to download the numbers on the National DNC Registry to ensure that they don’t call consumers to have registered their telephone numbers. The DNC Registry is broken down by area code, and the first five area codes a telemarketer accesses are free. Each additional area code will cost $75 in fiscal 2023, up $6 from fiscal 2022. The maximum charge for obtaining numbers for all area codes in the US will rise to $20,740 in fiscal 2023, up from $19,017 in fiscal 2022.
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