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An answering service allows a business to outsource its calls, ensuring its customers get a quality service. The cost of these services depends on many factors, but on average, an answering service will charge between $0.80 per minute and $1.17 per minute.
In the following text, we’ll dive deeper into the answering service costs by type. We’ll give you some tips on what you should consider when choosing one, as well as learn more about the factors that influence the cost of call answering services.
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Answering Service Cost Types
On average, the cost of an answering service functioning 24/7 ranges from $.80 per minute to $1.17 per minute, which equates to an hourly rate of approximately $20 to $45. However, these figures can vary depending on the complexity of the calls.
These are the pricing schemes you can choose from when using an answering service:
1 Pay by the Minute
The pay-by-the-minute model is commonly used, where you only pay for the time you consume. The answering service agency charges you for both inbound and outbound call increments.
Some pay-by-the-minute plans offer a base cost for a fixed number of minutes per billing cycle. Any time agents spend on a call is counted as accrued time.
It's important to clarify how the service providers compute call time, including whether they measure in full-minute increments or partial ones.
2. Pay per Call
With the pay-per-call billing model, the answering service company charges you a flat rate for every call taken, rather than basing the cost on the duration of the call.
Be sure to ask how wrong numbers and disconnected calls will affect your payments under this package.
3. Monthly Subscription
Many companies opt for recurring monthly billing. A monthly subscription will require a fixed number of minutes for each billing cycle. Every extra minute incurred beyond the allotted amount is charged at a flat fee on top of the base price.
Answering Service Cost Factors
An answering service delivers essential customer care solutions for your business. While not all answering service providers operate the same way, most offer features like email messaging, detailed call reporting and documentation, call routing, a 24/7 live virtual call center, and more.
The following factors influence both the range of features and the price:
1. Amount of Calls
It goes without saying that the lower the number of calls your agency receives, the lower the price per call volume will be. Many companies tier their answering service cost based on the amount of monthly or weekly calls you expect. This tiered pricing is a convenient and affordable choice for you as you only pay for calls that go through successfully.
Larger enterprises that receive more calls per month may find this factor too damaging to their budget. However, it’s not uncommon for phone answering services to offer discounts and lower prices if you keep scaling your number of calls.
2. Transfer Destinations
A transfer destination is a third-party recipient to whom a customer call is rerouted. The number of transfer destinations will affect your bills, with more transfers leading to higher costs.
To avoid unwarranted fees, you can weigh the benefits of subscribing to call transfers when outsourcing phone answering services. Assess the accuracy of redirected calls and the agency’s ability to ensure only select, important calls are transferred.
For example, a live operator should be able to answer basic inquiries and resolve simple issues without resorting to a call transfer.
3. Call Duration
Call duration is the basis of the pay-by-the-minute billing model. While spending less time on a phone call may seem to reduce costs, this can be misleading. Ultimately, an answering service should aim to satisfy customer needs, regardless of how long they should stay on the phone. Ideally, you do not want client service agents to rush their calls so you can reduce your expenses.
4. Wrong Numbers, Spam, and Dropped Calls
Occasionally, customers dial the wrong number, and these calls are still logged, meaning you have to pay for the service. Similarly, all enterprises receive spam calls, which can also result in charges even if you didn’t get anything out of the call.
For this reason, it’s important to clarify how these types of calls are handled by the outbound or inbound call center company. Check with them if they count spam calls into your monthly quota before you opt-in for their offers.
Considerations When Hiring Answering Services
Selecting the right customer support provider is crucial to your company’s success. This is why you should know what you intend to bring to your business before hiring a call-answer service.
Making an informed decision will ensure satisfaction for you, your clients, and your employees. Keep these key considerations in mind before signing up for the services of a customer support company:
- Quality level: An exceptional quality service will deliver excellent client care. It should include availability on an around-the-clock basis. If you are looking for top-notch quality, a low-cost answering service may not be the best option for you.
- Call handling skills: Investigate the satisfaction level you will get from using an agency. Note the amount of work that goes into processing client calls.
- Bilingual services: If your business runs internationally, you should choose a company with a bilingual queue. It may be necessary to assist prospective foreign customers accurately and more comfortably.
- Call statistics: Ask for monthly reports from different service providers to compare and evaluate. These reports should include the customer service representatives’ efficiency — the speed at which calls are taken and the average time they take to resolve concerns.
- Professionalism: The level of professionalism in customer service fosters customer loyalty. In the PwC Customer Loyalty Executive Survey 2023, 24% of people answered that they would go back to a company because the employees were friendly, knowledgeable, and helpful. Your call-answering service influences your brand’s first impression on consumers. Thus, it should reflect your values and represent your company accurately in a positive light.
- References and recommendations: Look at what other clients are saying about your choices of service provider. Read reviews and conduct a background check.
- Availability of inbound and outbound call services: Hire an answering service equipped with the capability to handle inbound and outbound calls.
Best Answering Service Companies You Can Trust in 2025
If you’re looking for reliable companies to handle your calls, here are two excellent choices for businesses of all sizes:
1. OBI Services
- Location: Aguillar Street, Dipolog City, Zamboanga del Norte, Philippines 7100
- Average Hourly Rate: $3
- Expertise: BPO, Call Centers, Lead Generation, Virtual Receptionist…
Based in the Philippines, OBI Services offers answering services and other call center and BPO services at a competitive cost. The agency boasts virtual assistants and receptionists with excellent English communication and customer service proficiency, in addition to other specialized skills like marketing, financial management, and legal.
OBI Services also offers outbound lead generation, sales support, data management, and technical support. Its clients include Meorient, Senior Market Solutions, and Congruent Marketing.
2. Backend Communications
- Location: 3rd Floor Capri Center, Main Firdous Market, Block J Gulberg III, Lahore, 54660, Pakistan
- Average Hourly Rate: $15
- Expertise: Virtual Receptionist, Call Centers, BPO, Outbound Call Centers...
Backend Communications is a contact center offering a range of customer service and contact support solutions. It provides virtual assistant and inbound call center services, helping companies handle different inquiries more efficiently and cost-effectively.
Businesses can choose from shared or dedicated teams, as well as virtual employees capable of handling more than just answering calls. Its other services include outbound call centers, healthcare call centers, email customer support, order-taking services, back office, and more.
Answering Service Cost Takeaways
The cost of an answering service is often worthwhile when you consider the professional-level client assistance it provides.
While the average cost for an answering service can be low, it’s important to compare different agency rates before narrowing down your choices to ensure you get the best deal. Be sure to verify the payment plan you will take and require full transparency to avoid overpaying.
Your choice of service provider can make or break the quality of your customer support. Finding the most fitting agency partner will help you boost productivity, improve control, and increase profitability.
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