Telemarketing is composed of two kinds of service, inbound and outbound. They have many differences, but achieve the same goal: to garner sales and provide service to customers. Telemarketing is the fastest growing industry today, and companies are using this in an effort to effect sales. Inbound telemarketing refers to the manner in which a company accepts calls from consumers. These calls are obligated to be answered with the customers sales order, or any other information, saved. Telemarketers find inbound telemarketing is simpler to do than outbound telemarketing because they already know the questions they will be asked about the products they are selling. Also, most of the services offered will streamline business communications, giving businesses an advantage, with the opportunity of nationwide expansion. In addition, some inbound telemarketing companies provide communication services that are tailor made to increase the efficiency of direct marketing.

Inbound telemarketing has numerous benefits, including higher volume of sales, greater profits, increased lead generation, reduced costs per sale, increased number of qualified telemarketing leads, increased number of appointments, increased customer base, higher number of closed sales, and maximum phone productivity. All of this, while offering the consumer a 24 hour, around the clock, operation. Inbound telemarketing is the least expensive and easiest method of communication with companies having the option to outsource their telemarketing services to a third party. Usually, they prefer outsourcing to other countries which have cheap labor costs to cut down on their expenses. These outsourcing companies are usually paid per hour, per call, and per sale. Today, inbound telemarketing is widely used throughout the world.

With its inexpensive costs and its ease of use, outbound telemarketing has been around almost since the invention of the telephone (inbound telemarketing did not come to be until 1967). Thousands of companies rely on the phone for a substantial part of their sales. Telephone sales now surpass direct mail as a form of advertising for businesses. Out-bound telemarketing provides the opportunity to make sales calls, to upgrade mail orders, do prospecting, or speed up cash flow to the corporation through accounts receivable collection efforts. Outbound calling may also be used to build retail traffic, get appointments for sales reps, and even re-sell customers who have cancelled their orders. Fund raising represents another area where outbound telemarketing has brought dramatic results. One pharmaceutical company realized the impact of outbound marketing when they found they could call hundreds of pharmacies an hour through outbound telemarketing compared to much less with direct mail, with lower costs to contend with.