AP sheds light on using toll free numbers to capture business.
The Associated Press published a story this morning about companies that reserve mass quantities of toll free phone numbers, either to capture callers or sell them to businesses that might want to use them.
On the surface this is very similar to domain names. You register a domain name, capture visitors looking for something related to it, and then sell the domain name to a business that wants to use the domain.
Indeed, a number of big domainers were first attracted to toll free numbers, including Rick Schwartz. Another company that is big in domains is the focus of the AP piece — National A-1.
According to the story, a company with similar ownership as National A-1 called PrimeTel owns 1,667,000 of the 7.87 million active 800 numbers. Most of these, according to the article, link to a paid sex talk hotline.
PrimeTel snaps up a many of the numbers the moment they expire. It costs less than 10 cents a month for the company to reserve each number.
For toll free numbers there are rules against “hoarding”, although this appears to be limited to companies like PrimeTel (essentially a toll-free “registrar”) from reserving domains without a specific client use.
Another interesting thing is that the article says PrimeTel has numbers such as 1-800-Metallica and 1-800-Cadillac. Of course there’s no such thing as these toll free numbers — each number on the phone corresponds to multiple letters in the alphabet. So unlike domain names, you can’t argue that PrimeTel is infringing a trademark with any of its numbers.
patrick says
This is why good descriptive domains are valuable,1-800 numbers have always been excellent marketing tools,easy to remember just like a good domain you know what your getting “usually”in fact domains are even easier to remember than searching your phone pad for the corresponding number/letter combo. The internet is the new 1-800 service hold on to those descriptive domains because the market is only going to get more competitive.
Rob Sequin says
Here’s a prediction on toll free numbers.
MOST will be gone within five years.
Crazy?
I recently learned from calling into ATT customer service that all my mobile to mobile calls (regardless of carrier) are now free and are not charged against my monthly minutes.
So, actually now if I call any toll free number or landline, I am charged for the minutes I use.
Add to this that most people have nationwide toll free calling and there is no advantage to a business having a toll free number anymore.
So, why would they continue to pay for one?
Does ANY new business get a toll free number?
Have you recently NOT called a business because they didn’t have a toll free number?
Printed yellow pages and toll free numbers are dead.
Andrew Allemann says
@ Rob – I’d say the primary benefit is something easy to remember. For the most part they start with 800, with secondary ones at 866, 877, 888, and now 855.
Andy says
@Rob – Yep. Phone numbers in general will increasingly become less visible, and YP publishers have a huge challenge to remain relevant. But my guess is they will prevail, considering their deep knowledge of the market.
Here’s what Ken Clark at YPTalk had to say:
“In the seven plus years we have published YP Talk articles we have looked at hundreds of new products and services being introduced to the Yellow Pages industry. Each in their own way, have had something they could contribute to the industry. However, none of them could have the impact that the introduction of the .tel domain will.” – http://bit.ly/fLLNEq
Anthony says
Any chance we will see call to domain soon ?
Andy says
@Anthony – Yep, there are VOIP softphones that support .tel dialing (e.g. voipGATE) and other smartphone apps that will make your address book dynamic.
http://www.telnic.org/tools-landing.html
Anthony says
@Andy … thanks 🙂
I was referring though to calling to the soft phone, land line etc on any domain extension … example instead of an MX record in the zone file a TEL record 🙂
DR.VEGAS says
Is it possible to link ANY phone number to a site? Say-for instance-you own 1800FLOWERS.COM…or even 305FLOWERS.COM…but you don’t have the corresponding phone number.You type in the site on your smartphone or tablet…and you need to talk to someone.You click on a button on the site and you’re put in touch with customer service.Is that being done? Can it be?