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Local and toll-free numbers
Updated over a month ago

When choosing a phone number for your business, it’s important to understand the differences between local and toll-free numbers. Both options have unique benefits and drawbacks. Knowing which type suits your needs can help you make the best decision for your company.

What are local numbers?

A local number is tied to a specific geographic location, identified by its area code. For example, if your business is in New York City, a local number might have a 212 or 646 code. Local numbers are familiar and can help you connect with customers in a specific region.

Pros

Cons

  • Localized brand
    Helps your business appear rooted in a particular community.

  • Customer trust
    Customers may feel more comfortable calling a number they recognize as local.

  • Affordable calls
    Calling local numbers usually means little or no charges for customers.

  • Recognized number
    Familiar area codes resonate with nearby customers.

  • Limited area
    May discourage calls from customers outside the local area.

  • Inappropriate for global business
    Can give the impression of a small, region-specific presence while your business serves a wider audience.

What are toll-free numbers?

Toll-free numbers do not refer to a specific geographic location. Instead, they use special area codes like 800, 888, or 877. Callers don't pay charges for using them as the business covers the cost of the call. Toll-free numbers are often associated with larger businesses.

Pros

Cons

  • Worldwide presence
    Makes your business appear larger and capable of serving customers worldwide.

  • Free for callers
    Removes cost barriers for customers, encouraging more inbound calls.

  • Professional image
    Creates a polished, expert business image.

  • Less personal
    Can feel impersonal, which may not resonate with local customers.

  • Higher costs
    You’ll need to pay for the incoming calls.

  • Distancing
    Customers may think your business is too far away or disconnected from their community.

How to choose the proper option for your business

To choose between local and toll-free numbers, consider the following:

  1. Where the target audience is
    If you primarily work with a local community, a local number may be more suitable. For broader reach, a toll-free number could be the better choice.

  2. How you build your brand
    Do you want to emphasize a personal, community-focused image or a large, professional presence?

  3. Evaluate costs
    Assess your budget for phone services and determine if covering toll-free numbers aligns with planned costs.

  4. Use both
    Many businesses choose to have both local and toll-free numbers to serve different customer needs.

Evaluate these factors and find the best phone number strategy to support your growth and customer engagement goals.

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