How Much Does an Answering Service Cost?

The cost of an answering service is a common concern for businesses looking to improve customer experience and never miss important calls. The price range for these services varies, typically between $100 and $1,000+ per month. The price you’ll pay depends on numerous factors specific to your business needs.

In this guide, we’ve gone beyond general price ranges to provide you with pricing models from five leading answering service providers so you can clearly understand the true costs involved. 

Whether you’re a small e-commerce store handling nationwide clients or a professional service provider concerned about missed calls, this comprehensive breakdown will help you decide on the right answering service for your business.

How Answering Service Plans Are Charged: Understanding the Models

It’s helpful first to understand how answering services structure their pricing. The billing model can have a significant impact on your pay, especially as your call volume fluctuates or your business grows. Let’s explore the common pricing structures you’ll encounter when shopping for call flow management and call answering services.

Per-minute pricing 

Per-minute pricing charges your business based solely on the time agents spend handling your calls. This includes the time they’ll spend answering calls, gathering information, delivering messages, and performing any other requested tasks. Most service providers offer various plans with a set number of included minutes, with additional per-minute rates for any usage beyond your plan’s limit.

☎️ Example of per-minute pricing: A basic plan might include 100 minutes for $150 per month, with additional minutes billed at $1.75 each. If your business uses 150 minutes in a month, you’ll pay $150 + (50 × $1.75) = $237.50. This monthly answering service cost will also vary based on your actual usage.

Per-call pricing 

With per-call pricing, you’ll get charged a flat rate for each answered call regardless of its duration. This model is straightforward — each time a representative answers phone calls on your behalf, it counts as one billable unit.

☎️  Example of per-call pricing: A call answering service might charge $5 per call with a minimum commitment of 20 calls per month ($100). If you receive 35 calls, your monthly service cost would be $175.

Tiered pricing 

Tiered pricing structures offer different service levels at corresponding price points. As you move up tiers, you typically get access to more minutes or calls, additional features, and possibly priority service — a common approach for answering service pricing.

☎️  Example of tiered pricing: A call answering service provider might offer three tiers: Starter (100 minutes for $199/month), Business (250 minutes for $399/month), and Enterprise (500 minutes for $699/month). This pricing model helps businesses choose a plan based on their anticipated call volume.

Flat-rate pricing 

With flat-rate pricing, you pay a fixed monthly fee that covers a predetermined level of service, whether you use it all or not. This model provides cost certainty and typically includes a specific number of calls or minutes for small businesses with consistent needs.

☎️  Example of flat-rate pricing: A flat-rate service might charge $350 per month for unlimited calls up to 200 minutes total, with clear overage rates if you exceed that threshold. This predictable answering service cost helps businesses plan their expenses with confidence.

Hybrid models 

Many answering services use hybrid pricing models that combine elements of different structures — such as a base monthly fee plus per-minute charges or tiered plans with different per-call rates at each level. Depending on your industry and needs, these pricing plans offer flexibility.

☎️ Example of hybrid model pricing: A hybrid model might charge a $150 monthly base fee that includes 75 minutes, then $1.95 per additional minute. This provides cost predictability for your core service while allowing scalability as your business receives more calls.

Pro tip: Don’t waste money on forwarding spam calls. With your unified customer experience management (CXM) platform’s Interactive Voice Response (IVR) system, you can implement key presses or other verification steps before routing calls to an external answering service, ensuring you only pay for legitimate inquiries.

Key Features That Influence Answering Service Costs

The price you pay for a telephone answering service doesn’t just depend on the billing model; it also depends on the features and services provided. The specific features and capabilities can significantly impact your overall cost.

Understanding which features are essential for your business needs will help you avoid paying for unnecessary extras while ensuring your customer satisfaction doesn’t suffer.

• Call recording: Recording calls for quality assurance, training, or compliance purposes is often available but may impact your answering service cost, typically adding $10-30 per month depending on storage requirements and retention periods.
• Call forwarding: Basic call forwarding is generally included in most plans, but complex forwarding rules, sequential routing, or international forwarding may incur additional fees, especially if you need calls routed to multiple locations or team members.
• Intelligent call routing: Advanced routing capabilities that direct calls based on caller ID, time of day, or specific criteria usually come at a premium. This functionality might add $25-50 to your monthly service cost but can significantly improve customer experience by ensuring calls reach the appropriate person.
• Inbound lead qualification: Services that screen and qualify leads before transferring them to your team often cost more than basic message-taking. This feature might increase your per-call or per-minute rate by 15%-25% but can save your sales team valuable time and help capture important leads.
• Customized call scripts and FAQs: While most services include call center script customization, complex scripts with detailed decision trees or extensive FAQs might require additional setup fees. Some providers charge $50-$150 for comprehensive script development to ensure they’re properly handling calls.
• Appointment scheduling and management: Integrated calendar management features that sync with your scheduling system typically add $20-$50 to your monthly cost. The more complex your scheduling needs, the higher this fee might be.
• Reporting and analytics: Basic call logs are standard, but detailed call analytics on call volume, average duration, and other metrics might be reserved for higher-tier plans. Custom reporting capabilities can add $15-30 monthly but provide valuable insights into your communication patterns.
• Multilingual support: Offering support in multiple languages can increase costs by 10%-20%, depending on the provider and languages offered. Spanish support is often included or available at minimal cost, while less common languages may command premium rates to ensure exceptional customer service.

Real-World Cost Comparison: Answering Services for an E-Commerce Small Business 

To provide you with practical insights, I obtained quotes from five answering service providers. For my comparison, I considered the specific needs of a growing e-commerce business with customers across multiple time zones requiring support during regular business hours but not necessarily 24/7 support.

Methodology: How I gathered cost information 

I approached this research as if I were an e-commerce shop owner looking for an after-hours answering service for my small business.

• First, I identified top providers based on market presence and reviews. 
• Then, I visited each provider’s website to assess pricing transparency, noting whether costs were clearly displayed or required contacting sales. 

For providers without transparent pricing, I gathered information from competitive comparison sites and industry resources to give you a complete picture.

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Answering Service Cost Comparison Table

Platform	Best for	Key features	Pricing model	Starting price
AnswerConnect	Large teams or enterprises	Inbound call answeringCall forwardingLive chat services	Hybrid pricing: Tiered and per-minute pricing	No starting price available, though competitor sites list $350 per month (+49.99 setup fee) for 200 minutes + 2.50 per additional minute
Smith.ai Virtual receptionist	Solopreneurs or small teams	Lead screening, qualification, and intake24/7 live staffBusiness insights	Tiered with per-call pricing + overage fees	$292.50 per month for 30 calls, with $11.00 per call overage fees, listed on website
Moneypenny	Businesses needing customizable, 24/7 call answering	24/7 answering serviceCustom call scriptingCRM integration	Hybrid pricing: Tiered and per-minute pricing + overage fees	$99 per month for 30 minutes, with $2.99 per minute overage fees, listed on website
Ruby Receptionist	Small businesses	Mobile app and portalSecure payment processingHIPAA and PCI compliance	Tiered and usage-based	$245 per month, listed on website
AbbyConnect	Growing businesses	Mobile appHuman, AI, and Live chat optionsGlobal search functionality	Hybrid pricing: Tiered and flat-rate pricing	$329 per month, listed on website

1. AnswerConnect

Despite claiming transparency, AnswerConnect requires potential customers to contact their sales team for specific pricing information. Based on competitor comparisons, their answering service costs start around $350 monthly for 200 minutes with a $49.99 setup fee and additional minutes at approximately $2.50 each—making them one of the more premium-priced options in the market.

The lack of upfront answering service pricing is disappointing, but AnswerConnect does offer 24/7 live answering service with extensive features like lead capture and appointment booking. Their service would be best suited for established e-commerce businesses with higher revenue that can justify the investment in premium services. The comprehensive nature of their offering makes them particularly valuable for businesses that need to handle calls around the clock and cannot afford missed calls that might cost them loyal customers.

2. Smith.ai Virtual Receptionist

Smith.ai stands out with clearly displayed call answering service prices and a transparent approach to fees. Their virtual receptionist service starts at $292.50 monthly for 30 calls ($9.75 per call), with additional calls billed at $11 each. They explicitly mention having no setup fee, no contracts, and no hidden fees — something I appreciate when evaluating the cost of an answering service.

For e-commerce businesses watching their budget while still wanting professional phone answering, Smith.ai offers an interesting alternative with their AI Receptionist at just $97.50 monthly for the same 30-call package. This hybrid approach, allowing escalation to a dedicated person when needed, presents an excellent balance of cost-effectiveness and service quality. 

The ability to screen leads and integrate with your existing systems makes them particularly valuable for businesses focused on lead generation through business calls.

3. Moneypenny

Moneypenny offers a relatively affordable entry point at $99 monthly for their Essential plan, which includes 30 minutes of receptionist time (about $3.30 per minute). Their answering service pricing structure is clearly displayed on their website, though detailed customization options require contacting their sales team.

The service would be particularly valuable for businesses focusing on premium customer experience, as Moneypenny emphasizes the quality and training of its staff to answer calls professionally. With features like CRM integration and appointment scheduling on its Personalized plan ($189/month), 

Moneypenny offers good value for businesses prioritizing seamless customer interactions. However, with overage fees at $2.99 per minute, costs could escalate quickly during busy periods if you’re not monitoring your call volume carefully.

4. Ruby Receptionist

Ruby offers straightforward pricing plans with comprehensive feature sets across all service levels. Their entry-level virtual receptionist package starts at $245 monthly for 50 minutes and scales up to $1,695 for 500 minutes. What stands out is that all plans include the same essential features — the only difference is the minute allocation for handling calls.

For e-commerce businesses seeking consistency in call answering with predictable pricing, Ruby presents an attractive option. Their service would be particularly valuable for businesses with complex call handling needs, as they offer appointment scheduling, payment processing, and English and Spanish support standards with all plans. 

The transparent pricing model makes it easy to budget for this expense, though at approximately $4.90 per minute on their starter plan, they represent a premium option in the market for small businesses needing professional call answering services.

5. AbbyConnect

AbbyConnect is best suited for growing businesses looking to enhance customer experience without the overhead of in-house receptionists. It offers transparent pricing for their virtual receptionist services, with plans starting at $329 monthly for 100 minutes on their Essential plan, $599 for 200 minutes on their Professional plan, and $1380 for 500 minutes on their Growth plan. 

Their service combines human expertise with technology, featuring dedicated receptionist teams of 5-10 specialists who provide personalized call handling for your business. AbbyConnect stands out by offering 24/7 availability, Spanish answering services, weekend coverage, and specialized features like appointment scheduling—making them ideal for e-commerce businesses that can’t afford to miss customer interactions.

For businesses requiring additional communication options, AbbyConnect provides local toll-free numbers, vanity numbers, and high-volume SMS capabilities through their AbbyGo mobile app. Their system integrates with various platforms and offers alternatives to a traditional automated phone system, ensuring every caller receives personalized attention. 

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How To Calculate Business Answering Service Costs

Understanding your specific communication needs is crucial before selecting an answering service. Analyzing your current call patterns will help you choose the right service level and avoid unnecessary expenses. Consider these questions: 

• How many calls is your business receiving daily? 
• At what times do most calls come in? 
• Is your internal staff overwhelmed with the call volume? 
• What types of inquiries do you typically receive?

Estimate your average call volume

Start by tracking the number of phone calls your business receives daily, weekly, and monthly. This data is essential for determining the most cost-effective pricing model for your situation. If your call volume fluctuates seasonally, calculate both your average and peak volumes to ensure your chosen service can handle busy periods without excessive overage charges.

Many businesses underestimate how many calls they receive until they begin tracking systematically. Your phone provider or current business phone system likely offers call logs to help establish these baseline metrics. Remember that missed calls count too — they represent the potential business you’re currently losing and should factor into your answering service cost calculations.

Consider the average call duration 

The length of your typical calls affects your costs, especially with per-minute pricing models. Some industries naturally have longer average call duration—technical support may average 8-10 minutes, while appointment scheduling might take just 2-3 minutes per call.

Track your call duration for at least two weeks to get reliable data. Be sure to categorize calls by type (sales inquiries, customer service, technical support) to understand which call types drive your answering service cost. This data will help you determine whether per-minute or per-call pricing makes more sense for your business needs.

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Determine the level of service and features you require

The complexity of your call handling needs directly affects answering service cost. Basic message-taking services are significantly less expensive than comprehensive solutions, including appointment scheduling, order processing, or detailed lead qualification.

Consider what your callers typically need. Do they simply want to leave voicemail messages or require immediate assistance with orders or technical issues? Do you need bilingual support? Will your answering service need access to your scheduling system or CRM? Each additional feature or integration increases the service cost but may deliver substantial value by improving customer satisfaction (CSAT) and operational efficiency.

Factor in additional costs or fees

When budgeting for an answering service, look beyond the advertised monthly rate. Many service providers charge setup fees ranging from $50 to $500 for account creation and script development. Others may charge additional fees for customizations, CRM integrations, or specialized training tailored to your unique business needs.

Also, be aware of potential overage charges if you exceed the limits of your plan. These can add up quickly, especially during unexpectedly busy periods. Some services also charge premiums for after-hours answering services, so confirm whether your quoted rate includes coverage outside regular business hours when your business receives important calls.

☎️ Example: Let’s say your e-commerce business receives approximately 8 calls per day, with an average duration of 4 minutes each, 5 days a week. That’s approximately: 8 calls × 4 minutes × 5 days × 4 weeks = 640 minutes per month

With this estimate, you can compare different service options:

• Per-minute plan: 600-minute package at $1.50/minute = $900/month + overage charges
• Per-call plan: 160 calls at $6/call = $960/month
• Flat-rate plan: Unlimited calls up to 700 minutes = $850/month

In this scenario, the flat-rate plan offers the best value for your calling patterns and would allow your business to save money on answering service cost. However, if your calls are typically shorter (2 minutes average duration instead of 4), per-call pricing might be more attractive. This step-by-step guide gives you a better idea of how to evaluate options for your specific business situation.

Never Miss an Important Call with Nextiva 

Understanding the costs associated with an answering service is just the first step toward improving your business communication. If you’re looking for a comprehensive solution that goes beyond basic call answering, Nextiva’s unified CXM platform integrates VoIP phone service, CRM, and call center features in one seamless system. 

With transparent pricing and flexible options for businesses of all sizes, you can finally stop worrying about unanswered calls and start focusing on business growth. No two businesses have identical communication needs, which is why Nextiva’s customizable platform allows you to pay only for what you need as your business grows.

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Answering Service Cost FAQ

How much do answering services cost?

Answering service costs typically range from $95 to $1,200+ per month, depending on call volume, features required, and pricing model. Basic services with limited minutes typically start at around $100 per month, while comprehensive packages with 24/7 support and advanced features can exceed $1,000 for businesses with high call volumes. The most important factor is finding a service that aligns with your specific business needs rather than simply choosing the lowest-priced option.

Is an answering service worth it?

An answering service is a worthwhile investment for businesses that frequently miss calls, require after-hours support, or aim to enhance customer service without hiring a full-time receptionist. Consider that a single missed sales call might cost hundreds or thousands in lost revenue, far more than the monthly service cost. Additionally, the professional impression created by live call answering can significantly enhance your business image and customer satisfaction, supporting businesses in their growth objectives.

What is the difference between a voicemail and an answering service?

Voicemail is an automated system that records caller messages for later retrieval, while an answering service employs real people who interact with your callers in real-time. Answering services can provide immediate assistance, answer questions, schedule appointments, and create a more personalized experience that builds customer satisfaction. Unlike voicemail, which many callers simply hang up on, answering services ensure your business never misses an opportunity to connect with your customer base.

Do people still use answering services?

Yes, answering services remain extremely popular among many businesses of all sizes. In fact, the market for professional call answering services continues to grow as companies recognize the importance of never missing calls. Modern answering services have evolved beyond simple message-taking to become virtual extensions of your business, handling everything from appointment scheduling to lead qualification and providing exceptional customer service.

How much does an AI answering service cost?

Depending on call volume and capabilities, AI answering services typically cost between $50 and $300 per month. These automated solutions typically offer lower starting prices than human-staffed services, making them an attractive option for small businesses with straightforward call handling needs. 

Basic AI services typically start at around $50- $100 per month, while more sophisticated systems with natural language processing and integration capabilities can cost $200-$300. Many providers offer hybrid models that combine AI efficiency with an in-house employee backup for complex situations, allowing businesses to handle calls efficiently while spending less money than traditional services.