Advantages & Disadvantages of Telemarketing

by Percila Jackson; Updated September 26, 2017

Telemarketing is a method of selling products and services over the telephone. It has both advantages and disadvantages. The advantages are it is easy to reach out to customers and it is cost effective if done successfully. The disadvantages are that it has a bad reputation and some of the startup costs are expensive.

Easy to Get to Customers

One of the advantages of telemarketing is that it provides a way for you to easily connect with prospective customers. It allows you to answer any questions or concerns people might have about your service or product. You can reach more customers over the phone more easily than in person or by going door-to-door. Telemarketing allows you to sell from a distance and expand your sales territory. You could potentially reach people on a national and global scale instead of just locally.

Cost Effective

Another advantage of telemarketing is that it is more cost effective than performing direct sales. It makes selling more efficient because you can get more selling done in less time. It is easy to generate leads using this method and lists of people’s phone numbers and other contact information can be purchased. The results of telemarketing are highly measurable, so you can keep track of its cost effectiveness.

It Has a Bad Reputation

A main disadvantage of telemarketing is that it is considered a nuisance by many people and it is governed by many legal rules that must be followed. The negative image of this form of selling may tarnish the reputation of your business. More people are using technology to screen out telemarketers and other unwanted callers. The government has also enacted tough measures to stop unscrupulous telemarketing practices.

Customer Lists and Training Personnel can be Costly

Telemarketing can be costly both monetarily and in manpower hours. Customer lists can be expensive and most of the contact information on them could be useless. For example, most of the people on a contact list may have no interest or use in what you are trying to sell. You may be making a lot of calls but not getting any new customers. It may be time consuming to train your staff on how to sell your product over the phone and you may need to prepare a well-written script.

About the Author

Percila Jackson has been a writer since 2008. She primarily writes computer, electronics, legal and tax articles for various websites. Jackson holds a Bachelor of Arts in political science from California State University, Long Beach.