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What are toll free numbers?What is the easiest way to obtain a toll free number?Which option is right for me?Market standard for major phone service providersMarket standard for VoIP toll free

What are toll free numbers?

toll freeToll free numbers allow callers to reach you or your business without being charged for the call; instead, your business incurs the charges. There are a variety of benefits to having a toll free number which will be discussed later. Before researching service providers, you should figure out if a toll free number is beneficial for you and your business.

How Does it Work?
A toll free number acts as an intermediary between the caller and the recipient.You do not need a new phone line to get a toll free number. All incoming calls can be forwarded to your already existing local line. The only thing that differs between the two numbers is that when calling from a toll free number, the caller incurs no charges. The recipient can set the toll free number to be instantly forwarded to a landline, fax machine or even a cell phone. Installation of new hardware is not required, and you can set up your new phone number in minutes.


What is the difference between 800 numbers and 888, 877 and 866 numbers?
800, 888, 877 and 866 are all prefixes for toll free numbers. 800 numbers were the first toll free numbers but the demand for such numbers exceded supply so companies began issuing toll free numbers with 888, 877 and 866 prefixes. They all function the same it's just a lot more difficult to get an 800 number than one of the other prefixes.

Who uses a toll free number?

There are three known groups for which toll free numbers are most applicable:


Corporations

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The first group is large businesses or corporations. Large businesses use toll free numbers for their customer support line in order to become more accessible to the consumer. When using a toll free number, consumers are free to call for support or help at no charge.

Small Businesses

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The second group is the small business. Small businesses use toll free numbers to increase visibility and to create an image of national presence. Having a toll free number helps small businesses differentiate themselves from their competition by seeming more customer service friendly.

Individuals

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The third group is individual consumers. There are several factors which could explain personal toll free number use; however, the most common users seem to be parents whose children are away at school. By obtaining a toll free number parents can provide a convenient way for family members to call home without having to pay a monthly premium or make a collect call.

What is the easiest way to obtain a toll free number?

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There are three prevalent methods of obtaining a toll free number:

First, you can get a toll free number from the major phone service providers who offer toll free service to all users within their jurisdiction for a monthly premium. Second, you can get a toll free number from resellers who have access to toll free numbers and who will sell them at a discounted rate upfront. The third option, which is increasing in popularity, is to obtain a toll free number through a VoIP or Virtual PBX provider.


Which option is right for me?

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When comparing the three main toll free options it is important to look at both the cost and features of each service option. The major phone providers such as AT&T, Qwest, and Verizon offer brand name recognition but also have on average the highest monthly premium. Conversely, most resellers who offer toll free numbers at a very low monthly premium tend to have a higher per-minute cost than their major phone service provider counterparts. Obtaining a toll free number through a VoIP service provider, however, offers lower overall costs. VoIP providers have hit the mainstream, thanks to companies such as Vonage and RingCentral, who provide VoIP phone service at a low cost along with low per minute rates. VoIP service is available to anyone who has an internet connection. Though there are minimal differences between the features provided by the major phone companies and toll free number resellers, most VoIP services come standard with features that can include anything from auto-attendants, unlimited extensions, unlimited voicemail and the option to customize a personalized message or music when a caller is placed on hold.

Market Standard for Major Phone Service Providers

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In order to utilize standard toll free service through a major phone company a landline must first be obtained. In most of the United States the market average for an initial phone line is $35. Northeastern states require a relatively more expensive initial cost at $61 per line.

The average cost to set up a toll free number through most major telephone companies is $5-$12 per month.

In addition to the monthly fees for both the local line and the toll free number, there is also a per-minute charge for all calls received through the toll free number. On average, there is a charge of 6 cents per minute on all calls received through a toll free number.The fees you pay for a toll free number should give you access to the following standard features:

  • Caller ID
  • Call Waiting
  • Voicemail
  • Vanity Number (at an additional cost)

Market Standard for Business-Toll-Free Service through a Virtual PBX

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Several, not all, companies offer a discount if you sign up for an annual contract option. Most include 100 minutes with a $15 market standard monthly fee. However, the higher end services (in the $30+ price range) offer unlimited minutes. The average overage charge for each additional minute is 6¢ per minute.

Most services offer vanity numbers for a $30 one-time fee.

Nearly all services give you the option of transferring your toll free number from your last service, with many providers charging anywhere from $5-$30.The market standard transfer fee is typically $25.

Included with toll free service are a limited number of extensions. The market standard is typically 10 extensions.

In terms of activation fee, half of all the services we reviewed do not charge to active your service. Among those who do charge an activation fee, we found the market average for this charge to be $25.

The fees you pay for a VoIP or Virtual PBX toll free number should give you access to the following standard features:

  • Auto attendant
  • Extensions
  • Call Routing
  • Send the call to your office landline, or your cell phone
  • Online system management
  • Customizable call queue system
  • Caller ID
  • Numerous Voicemail mailboxes
  • Dial-by online directory
  • Fax compatibility
  • Vanity number (at an additional cost)
  • Transfer your old business toll-free number to your new business for free.