It’s no secret that the call center industry is booming. In fact, according to reports, the global market for customer service and support reached $544 billion in 2020. As a business owner, it’s crucial to understand how much money you can make in this industry and what factors will affect your bottom line.
This article will provide an overview of the call center industry, how much call center owners make, and what expenses to expect when starting a call center.
Call Center Industry Overview
The call center industry employs millions of people worldwide and offers a wide range of services, from customer service and technical support to sales and telemarketing. Its market share is growing every year, thanks to advancements in technology that have made it easier and more affordable for businesses to outsource their call center needs.
Let’s explore the types of call centers.
Types of Call Centers
There are four main types of call centers:
- Inbound call centers handle customer service calls.
- Outbound call centers make sales calls or conduct surveys.
- Outsourcing call centers are hired by businesses to handle their customer service or sales calls.
- Virtual call centers are run entirely online and often employ remote workers.
Each has a different business model and profit potential. For example, inbound call centers make money by charging businesses per-minute rates for the calls they handle. On the other hand, outbound call centers generate revenue through the sales they make or the commission they earn on each sale.
There are several ongoing expenses you’ll need to consider when starting a call center business, including:
- Staffing: You’ll need to hire a team of customer service representatives (CSRs) and a manager to oversee operations. Depending on the size of your operation, you may also need to hire additional staff, such as IT support and HR personnel.
- Training: Call center employees need training on how to use the various systems and software they’ll be using, as well as how to handle customer calls. Training can be done in-house or through an outside training firm.
- Equipment: You’ll need several phone lines and computers, as well as other office equipment, such as desks, chairs, and filing cabinets.
- Software: There are multiple software programs you’ll need to purchase, including a call center system, an auto-dialer, and a customer relationship management (CRM) system.
- Rent: If you’re not running a virtual call center, you’ll need to find office space to house your operation. Depending on the location and size of your call center, your rent could be a significant expense.
- Utilities: You’ll need to pay for electricity, water, and other utilities to keep your call center up and running.
Since call centers rely on customers to generate revenue, it’s essential to invest in marketing and advertising to attract new business. There are several ways to market a call center, including online advertising, direct mail, and print ads.
How Much Do Call Center Owners Make?
The amount of money you can make as a call center owner depends on several factors, including the size of your operation, the type of services you offer, and how well you market your business. Generally, most call center owners make between $30,000 and $50,000 a year. However, some call center owners make more than that. An owner can pay themselves a salary, then a percentage of additional profits.
Nonetheless, call centers can generate income of $100,000 to $300,000 per year. The typical amount to run a call center is $100,000 to $250,000. But even a small call center can do well if it’s run correctly.
The call center industry is a booming business with plenty of opportunities for entrepreneurs. If you’re considering starting a call center, it’s essential to understand how much money you can make and what expenses you’ll need to consider. With a little planning and hard work, you can be on your way to making a healthy profit as a call center owner.