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10 Ways to Reduce Small Business Long Distance Costs

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Choosing the best calling plan for your small business is an important task. Every penny saved on long distance can be applied elsewhere to your business operation. Do you dread the thought of switching your small business long distance because of past bad experiences or confusion over how to choose the best calling plan? The following are tips on how to choose the best small business phone plan for your business:

1. Read the Small Print: Don't be focused on the per minute rate and ignore the hidden fees in the fine print. Read the small print if you come across something you don't understand, ask what it means and don't stop asking until you get an answer.

2. Term Contract: In 98% of the cases, you should not sign any type of contract which will lock you into a specific calling plan for any length of time. The exception to this would be if you have a large business set up on a T-1 or if you spend thousands of dollars a month in small business long distance. In this situation you might be asked to sign a contract to receive a rate of a few cents per minute. If you do sign a contract, be aware of what your penalty will be to terminate the contract early. Most likely, it will cost you thousands of dollars to terminate the contract.

3. Rate Increases: Do not sign a term contract to "lock in", unless you are on a T-1 or spending thousands of dollars a month, you should be able to get a permanent locked in rate without having to sign a contract. Many reputable small business long distance carriers will do everything they can to keep you at the same rate you had when you signed up even if they have a rate increase later, all without you signing a term commitment.

4. Monthly Minimums: Having a monthly minimum to receive a low per minute rate is no problem unless you don't meet that minimum every month. If your plan has a $100.00 monthly minimum and your small business long distance bill is only $75.00, you will still be billed $100.00 for that month.

5. Toll-Free Numbers: A toll-free number for your business is a smart business decision. It invites existing and potential customers to call you at no cost to them. Learn if your incoming per minute rate on the toll free is higher than your outgoing rate. Check to see what the charge will be for someone calling you from a payphone and what the billing increments will be for incoming calls. If you currently have a toll free number, you will be asked to fill out a "Responsible Organization" form that will give your current small business long distance carrier instructions to release your toll free number to your new carrier.

6. Billing Increments: The billing for a good business-calling plan should be in 6-second increments. This means if your call is 18 seconds long, you will be billed for only 18 seconds. If your call is 19 seconds, you are billed for 24 seconds. If you have one minute billing increments your 18 second call will be billed for a 1-minute call. This little difference can add up over time, especially if you make numerous calls a month or fax a lot.

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