Telemarketing is the process of selling goods and services over the telephone. It has been used to successfully market a variety of products ranging from insurance to newspapers to industrial equipment, and it has the potential for selling virtually any product.

There are two kinds of telemarketing— outbound and inbound. Outbound telemarketing calls are those placed by salespeople to homes or businesses. Inbound telemarketing occurs when customers call in to businesses to place orders.

Outbound telemarketing is particularly appealing to businesses whose salespeople have traditionally made outside sales calls. It reduces the cost per contact, increases the number of contacts that can be made per day or week, and still retains the human element. Computerized databases of prospects and automated predictive dialers can further extend the potential number of contacts a telemarketer can make. Outbound calls can be used to canvass for new business, follow up former customers...