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What is the difference between a Freephone and Premium Rate number?

The telephone is still one of the best channels for fostering client relations. And, phone calls have shown to be an extremely effective tool for turning leads into conversions. Put differently: it is easier to make a sale during a phonecall than for example over direct mail.

Experiences that our clients share with us, confirm independent international research which has shown that the use a Freephone or Premium Rate number can earn you an increase of as much as 15% in number of telephone calls received compared to a regular telephone number. That this greatly affects brand name recognition, turnover and profit does not need explanation. 

The choice then, to start using a Freephone or Premium Rate number for your client contact seems an obvious one. But which one should you get? A Freephone number or a Premium rate number? What really is the difference between these two? We will try to give you the answers in this article.

Freephone or Premium Rate?

The main difference between these two types of business telephone numbers is that a Freephone number is free for callers, while a surcharge applies for calling a Premium Rate number. 

Exactly how much a call to a Premium Rate number costs, is a decision the owner of the number takes. Callers can be charged by the minute or per call, but how much exactly depends on the country in which the number is registered.

Number owners-to-be often ask us what the best rate is to charge for calls to their Premium Rate number. Because this differs vastly from country to country, and from business to business, it is nearly impossible to give firm rules for this.

Our customer support experts have years of experience in dealing with these and other questions in a wide range of countries and business types. They will be more than happy to advise you about your particular case.

So what type of number is best for your organisation?

Depending on what you want to achieve with your business number, you might have a preference for either a Freephone or a Premium Rate number.

If your objective is to attract as many callers as possible, a Freephone number is the most logical choice. This type of number is often used for customer services, promotional campaigns or emergency lines. Another popular application is as a so-called loss leader, where customers make a free phone call to order a paid product or service. Good examples would be a pizza delivery or a taxi ordering service. 

But a Freephone number might not be the perfect solution for every organisation.

By registering a Premium Rate number, you get to set the tariff that will be charged to callers. Any money that is left over from this tariff after costs have been deducted, is paid out to you, the number owner, in monthly payments. 

You can change this call rate whenever you like using our online customer control panel. Be aware though that you might attract fewer callers because of the extra charge.

What to do next

In this article, we’ve covered the most important differences between a Freephone and a Premium Rate number, as well as why organisations would opt for one or the other.

You problably now have a good idea which type of number is most suitable for your organisation and your purposes.

If you still have any questions, or would like to verify if your desired number is still available in the country of your choice, please contact us or chat with one of our customer service experts.

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