Is a Live Answering Service Worth the Cost? Here’s What to Know
When I first started my business communications company over a decade ago, one of the most common questions I got from clients was, “Is hiring a live answering service really worth it?” And now, 13 years later, I still get that same question.
The short answer? Yes—if you’re serious about customer experience, growth, and professionalism.
I’m Erin Taylors, a Harvard graduate with a background in Technical Communications. As the owner of a successful call management company in New York and a writer for Find Answering Service, I’ve helped countless business owners transform how they handle calls, inquiries, and emergencies. If you’ve ever missed an important call or worried about losing leads after hours, this blog is for you.
Why Businesses Choose Live Answering Services
There’s a huge difference between letting calls go to voicemail and having a trained professional pick up on your behalf. A live answering service acts like an extension of your team, making sure your customers feel heard, valued, and taken care of—no matter when they call.
What Is a Live Answering Service and What Are the Alternatives?
A live answering service is a professional call-handling solution where real people—usually trained customer service agents—answer incoming calls on behalf of your business. These agents follow your custom scripts, route calls, take messages, schedule appointments, and often provide basic customer support. The goal is to make sure your customers always reach a person, not a voicemail box.
Unlike automated systems, live answering services give your callers a human connection. That matters more than ever today, where people expect fast responses and personal attention.
Common Alternatives to a Live Answering Service
If you’re not using a live answering service, you’re likely relying on one of the following:
1. Voicemail
Many businesses still default to voicemail during off-hours or when their team is unavailable. The problem? Most callers don’t leave messages—they hang up and call your competitor.
2. Automated Phone Menus (IVR)
Interactive voice response systems let callers navigate a phone menu using buttons or voice prompts. While useful for large businesses, IVRs can feel impersonal and frustrating for people who just want to speak to someone.
3. In-House Receptionist
Hiring a full-time receptionist can provide that personal touch, but it’s costly—especially when you factor in salary, benefits, and time off. Most small businesses can’t justify the expense.
4. Call Forwarding to a Cell Phone
Some owners forward calls to their personal phone, which can work in a pinch. But it’s not scalable, and it puts all the pressure on you to be available at all times.
The Cost of Missing a Call
Before we talk dollars, let’s talk damage. Every missed call is a potential missed opportunity. In service-based industries especially, a single unanswered call could mean:
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A lost job worth hundreds or thousands
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A frustrated customer who moves on to a competitor
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A poor first impression that sticks
When your phone goes unanswered—especially during high-demand periods, holidays, or nights—you risk more than lost revenue. You risk your reputation.
What You Get with a Live Answering Service
Many people assume answering services just take messages, but the best ones do much more. Depending on your needs, you can customize services that include:
Personalized Call Handling
Your calls are answered in your business name, with scripts that match your brand tone and voice. Callers don’t even know they’ve reached a third-party service.
24/7 or After-Hours Coverage
If your business runs outside of a strict 9-to-5, a live agent can ensure you’re never “closed” when a customer calls. This is huge for industries like HVAC, legal, medical, and eCommerce.
Lead Capture and Appointment Scheduling
Professionals can qualify leads, schedule consultations, or even book appointments on your calendar, reducing your administrative burden significantly.
Bilingual Support
Many answering services offer Spanish-speaking representatives or other language options, giving you broader customer reach without hiring in-house staff.
So, What Does It Cost?
Prices vary depending on your industry, call volume, and service level, but here’s a general idea of what most businesses can expect:
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Per-minute billing: ~$1.20 to $1.50 per minute of agent time
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Monthly packages: Starting from around $60 for very basic coverage and going up to several hundred for full-featured plans
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Custom plans: Larger businesses may pay $1,000 or more for high call volume and complex call routing
When you compare this to the cost of a full-time receptionist (salary, benefits, training), a live answering service quickly becomes a cost-effective alternative.
Is It Right for Your Business?
Not every business needs a live answering service—but most can benefit from one. Here’s how I typically break it down:
You Should Consider a Live Answering Service If:
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You miss calls after hours or during lunch breaks
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Your staff is overwhelmed with phone duties
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You operate in a fast-paced, service-based industry
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You want to improve your first impression and response time
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You want a scalable way to grow your communication without hiring full-time
You Might Not Need One If:
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You rarely get phone calls
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Your business operates only a few hours a week
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You have full in-house staff that handles calls efficiently
The ROI Goes Beyond Dollars
One thing I tell every client: the true value of an answering service isn’t just measured in savings or new revenue. It’s also in peace of mind. Knowing your customers are taken care of—whether it’s a panicked call at 2 a.m. or a potential lead on a Sunday morning—frees you up to focus on what you do best.
Plus, your customers will notice. Companies that answer promptly, politely, and professionally are remembered.
Final Thoughts
A live answering service isn’t just a convenience. It’s a communication strategy. It’s about showing your clients that their time matters—and that their call is always welcome.
If you’re unsure whether the investment makes sense for your business, start small. Many providers offer free trials or flexible monthly plans. Once you start, you may wonder how you ever lived without one.
About the Author
Erin Taylors is a Harvard University graduate with a Bachelor of Science in Technical Communications. She is the owner of a business communications company in New York and has spent 13 years helping businesses improve their customer service through strategic call handling. Erin is also a writer and editor for Find Answering Service, where she provides insights on improving accessibility, professionalism, and customer experience.
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