A Brief Overview of Telemarketing Bonds
What is Telemarketing?
Telemarketing is selling products or services to customer through a telephone call. The customers are called on numbers taken either from telephone directories or from the company’s database. The calls mostly follow scripted sales pitch with some room to customize the pitch according to the customer.
Telemarketing can be done in one of two ways:
· You engage a call center dedicated to making sales pitches on your behalf.
· You have a dedicated sales team that solely sells your products and services.
In both cases, if you’re selling products or services to customers through telephone calls, you’re considered a telemarketing company. The sales team that works in these companies face an exceptionally difficult time since prospective customers are often rude to them. Telemarketing sales pitch are difficult to execute and so the salesmen often resort to defrauding and lying to the customers. It’s for this reason that telemarketing bonds exist in the first place. Keep reading to find out how these bonds protect customers from telemarketing frauds.
Can Anyone Do It?
To become a licensed and registered telemarketing company, you must get a telemarketing bond prior to registration. Only three states allow telemarketing companies to function without a bond: Connecticut, Alaska, and Colorado. For all the other states, a telemarketing business is only issued a license to operate if they have a valid telemarketing bond.
This bond is issued to companies after a thorough vetting process to ensure that the general public remains safe from fraudulent activities. It also acts as a guarantee to the state that the telemarketing company will follow all the laws to the T.
What is a Telemarketing Bond?
Like in any other bond, telemarketing bond also has three parties: the principal, the obligee, and the surety. Here’s the role of each:
· The principal is required to pay for the bond and has to provide ethical telemarketing services to the clients.
· The obligee are all the customers that the telemarketing company targets and government of the state the company is based in.
· The surety is the company that pays on behalf of the principal in case of principal’s fraud or failure to satisfy the obligee.
There’s a common misconception that a telemarketing bond protects the principal; this is far from true. The goal of putting a telemarketing bond in place is to protect the consumer from the fraudulent activity of these telemarketers. It also ensures that the telemarketer abides by all the state laws and regulations because failure to do so will result in penalty and cancelation of bond.
Since telemarketers face exceptionally difficult conditions when selling the product, telemarketing bonds are labeled high risk. The high-risk bonds are generally more expensive for the principal. However, it’s essential to secure one in order to legitimately operate your licensed telemarketing business.
Hire SuretyEZ to Get Your Telemarketing Bond
If you’re looking for surety bonds in Los Angeles, you’ve come to the right place. At SuretyEZ, we offer all kinds of license and permit bonds, including telemarketing bonds. We are committed to providing security to the final consumer and ensure the principal telemarketing company is obligated to abide by the law.
Our dedicated team works tirelessly to vet prospective clients and issue bonds to telemarketing businesses across the country. Contact us on our website to learn how to buy a surety bond that suits you.