Telephone Answering Services Revenue Benchmarks
The average telephone answering services business in the United States generates $2.7M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 1,009 telephone answering services businesses in the U.S., employing 45,011 workers with an average profit margin of 8.0%. The average employee in this industry earns $51K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Telephone Answering Business Actually Do?
Live receptionist services for small businesses that can't staff their phones. Include Ruby Receptionists, PATLive, Answer 1.
Who buys: Solo practitioners (lawyers, doctors, consultants), small businesses needing professional phone coverage.
Average Revenue
$2.7M
per year
Profit Margin
8.0%
industry average
Revenue / Employee
$61K
per year
Total Businesses
1,009
in the US
Est. Owner Income
$218K
small business avg
Labor Cost
55.0%
of revenue
Avg Employee Wage
$51K
per year (BLS)
Market Saturation
0.3
firms per 100K people
How Much Do Telephone Answering Services Charge?
Live answering services take calls for small businesses that can't staff phones.
| Service | Typical range |
|---|---|
Basic answering plan (100 calls/mo) | $50–200/month |
Mid-tier (300 calls/mo) | $150–500/month |
High-volume (1,000+ calls/mo) | $500–2,500/month |
Per-minute rate (overage) | $1–3/minute |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete telephone answering business plan
A 12-section data-backed business plan for a telephone answering services business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the telephone answering services industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Direct service costs | $7 | $202K | Cleaning supplies, uniforms, equipment consumables — depends on service type. |
Wages & benefits | $55 | $1.5M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $6 | $151K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $4 | $101K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $20 | $555K | Insurance, background checks, training, transportation, admin. |
Net profit | $8 | $218K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
8.81%
openings/year
Closure Rate
13.14%
closings/year
Net Job Growth
-7.8%
annual
Businesses Closed
2,058
in 2023
Firm Count Trend
Should You Start a Telephone Answering Business?
Startup Cost
$50K – $250K
Break-Even
8 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a telephone answering services business do?
- Live receptionist services for small businesses that can't staff their phones. Include Ruby Receptionists, PATLive, Answer 1. Solo practitioners (lawyers, doctors, consultants), small businesses needing professional phone coverage.
- How much do telephone answering services charge?
- Live answering services take calls for small businesses that can't staff phones. See the pricing table above for typical rates by service type.
- How much does the average telephone answering services make per year?
- The average telephone answering services business generates $2.7M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $218K per year at a 8.0% profit margin.
- How many telephone answering services businesses are there in the US?
- There are 1,009 telephone answering services businesses operating in the United States, employing a total of 45,011 workers.
- How much does it cost to start a telephone answering services business?
- Startup costs for a telephone answering services business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the telephone answering services industry?
- The average employee in the telephone answering services industry earns $51K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The telephone answering services industry is contracting — losing jobs at a net rate of 7.8% per year. More establishments are closing (13.1%) than opening (8.8%), suggesting market challenges.
Approximately 49% of telephone answering services businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 2,058 firms in this industry closed permanently.
Employment & Wages
The average employee in the telephone answering services industry earns $50,953/year. This is near the national average of ~$65K. With 3,178 establishments employing 35,867 people, the typical business has about 11 employees.
Industry Trend (2000–2023)
The telephone answering services industry has declined 23% since 2000 (from 25,410 to 19,450 firms).
See full historical statistics →Compare Telephone Answering Services revenue with other industries: