27 Oct

Different Telemarketing Outsourcing Pricing Models

The continuing demand for a reliable outbound call center demonstrates how third-party telemarketing providers have been helping foreign companies boost productivity and save operational costs. The average cost of hiring outsourced services of BPO companies in the Philippines and Asia region is between $8-$14. The pricing structure also depends on significant factors, which include software, equipment, infrastructure, liability protection, and agents’ professional skills.

telemarketing pricing models

Here’s a closer look at different types of pricing models:

Fixed Priced (FP) model

In the fixed-priced model, the service providers set standard rates for outbound telemarketing services. They are charged annually or monthly but mainly depend on the client’s preferences. FP model includes workspace and tools charges. It can be adjusted based on the success targets, employees’ salaries, and incentives.

Time and Materials (T&M) model

The T&M model is called the cost and materials (C&M) model. It is the typical choice of companies that offer long-term Information Technology (IT) projects. This model requires the service providers to set their proposals and bid on projects. The hired provider must also do their operations per the company’s requirements or make an in-house operation. It is also the typical pricing structure for the build-operate-transfer (BOT) process, allowing the service to build and manage initial project development. 

Cost reimbursable model

The cost-reimbursable or cost-plus model allows the service providers to limit consumable expenditures and add a certain percentage to the profit. It may also be combined with incentive pricing.

Profit-sharing model

In this profit-sharing model, there is an agreement between the service provider and the client. The clients can set a specific percentage of the profits and give it to the service provider. The profit-sharing model makes both parties take the partnership agreement to a higher level to produce better output and profit.

Staffing model

In the staffing structure, clients contract the service provider’s resources for a certain period. Call center companies in the Philippines offer staffing, including professional agents, workspaces, desktops, internet phones, and other vital tools for the necessary tasks. This model allows the client to control the project and often sends a supervisor or an in-house specialist to train and scale up the current staff to meet the industry demands. 

Incentive-based model

In this incentive-based model, the client agrees to give a commission or bonus to the service provided as a reward for good performance. The better the output, the higher the incentive tier. This pricing model is also ideal for seasonal accounts, after-office hour services, and 24/7 line services.

Shared risk-reward model

The shared risk-reward model is almost similar to the incentive-based model, but the clients and the service providers share the accountabilities. They share the development and risks of essential tasks. This pricing structure can be combined with profit-sharing, Fixed Price, or a Time & Material model.

Consumption-based model

This model is mainly used by cloud service providers like Dropbox, OneDrive, and call centers that allow per-minute charging. It involves charging the client for the actual usage of the services within a year or a month, depending on the agreement. The client enjoys the costing flexibility because it only pays for the services it used within the month or the contract period. 

Takeaway

Business process outsourcing (BPO) has become a better option for large companies and small, medium, and start-up businesses that need to create a distributed workforce. With the demand for well-trained specialists who can effectively handle outbound call center services, finding the best service provider with a reasonable pricing structure and infrastructure is the initial step to a successful outsourcing business.

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