Understanding Conference Pricing
There are various factors to consider when comparing the cost of conferencing. Some services advertise low per-minute rates but hit you with higher rates if you exceed your limits. Others only offer low rates to customers who agree to spend a minimum amount each month. Often companies don't realize the true cost of their conferencing until the first bill. By then it can be too late because they are now locked into a long-term contract.
Glossary of Terms
Per minute - conference calls are charged per minute, per conference leg. For instance, a 30 minute conference call at 7.9 cents a minute involving three separate parties is calculated by multiplying the rate per minute (7.9¢) x number of legs (3) x number of minutes (30). The total is $7.11.
Toll Conference - Each participant joins the conference call by dialing a toll number for which they are charged. Generally, the conference organizer is also charged a small fee for access to the conference bridge.
Toll-Free Conference - Each participant is provided a toll-free number to join a conference call. The conference organizer foots the entire bill for all participants. The cost per participant, per minute is usually the highest base rate charged by a conference provider.
Web Conferencing - A conferencing feature using the internet to provide a visual aspect to conferencing. Webcams or special software allow participants to see each other or presentations online. Most conference providers charge extra for this feature.
Monthly Fee - A flat fee charged each month for access to a conference bridge, specific equipment set up to handle multi-line calls. May include a certain number of free minutes.
Overage Fee - A higher rate charged if usage exceeds a specified number of minutes per billing cycle.
Annual Contract - To take advantage of lower rates, customers are required to commit to a year of service.
Minimum Usage - To take advantage of lower rates, customers are requred to use a certain number of minutes during the billing cycle.
In the end, it's important to deal with a company that is up front with its pricing and offers both long-term contract pricing as well as affordable month to month pricing.