Telemarketing Consulting Firm Continues to Ring Up Sales
For 13 years, former medical equipment salesman John Ruby, 41, has run Global Communications Networks Systems, a four-person Andover business that provides consulting services to telemarketers and other call-center operators. His world was shaken on Oct. 1, 2003, when the Federal Trade Commission’s National Do Not Call Registry—which limits a telemarketer’s ability to make unsolicited phone pitches—went into effect. NJBIZ Staff Writer Martin C. Daks spoke with Ruby about the way the Do Not Call regulations, along with a permanent extension President Bush signed into law Feb. 15, affect his clients and his business—and what he did after his wife registered their home phone on a Do Not Call list.
NJBIZ: How did you get involved in telemarketing consulting?
Ruby: After college I held some sales jobs, including selling medical equipment in New Jersey. Eventually, I went into business with a fellow who built parts for predictive dialers, the computerized machines at call centers that dial phone numbers and then forward them to available [sales] agents. We eventually went our separate ways. I used my many contacts in the call-center industry to launch Global Communications Networks Systems.
NJBIZ: What kinds of services does your company offer?
Ruby: We provide discounted voice and data telecommunications services to businesses across the nation, matching them up with telecom providers that meet their pricing and other needs.
NJBIZ: Is your customer base limited to telemarketing operations?
Ruby: No. Most of our clients provide outbound [telemarketing] services, but many also handle inbound customer support and other services, too.
NJBIZ: How do you get new business?
Ruby: Largely by going to industry events and networking, and
by recommendations.
NJBIZ: In 2003, the National Do Not Call Registry—which restricts the ability of telemarketers to contact homes—was signed into law. States have also enacted their own Do Not Call lists. Were you worried about the potential impact on your business?
Ruby: I was worried when I first heard about the proposal for the Do Not Call list. Call centers were a big part of my company’s operations and I was worried that the $11,000 per-violation fines it called for might put our clients out of business. But before the legislation went into effect, I found out that some companies were offering outbound call-blocking technology. When I heard that, a light bulb went off and I realized this could be good news for my business.
NJBIZ: Did you lose much business?
Ruby: Some smaller firms went under, but overall I’ve done more business since the legislation was signed.
NJBIZ: How?
Ruby: Some smaller telemarketers tried to fly by the seat of their pants, manually updating their call lists against national and state Do Not Call lists. But that didn’t always work. They either made unintentional errors in their manual efforts, or they had outdated information. Their efforts often led to violations and to expensive fines. But the larger, more sophisticated companies put systems in place to comply with the law. Our company is an agent for Excel and other carriers that offer call-compliance systems with their voice and other services, and we’ve seen a steady increase in the demand for these services.
NJBIZ: How does a call-compliance system work?
Ruby: "Companies like Compliance Systems Corp. in Glen Cove, N.Y., have automated systems, like one called TeleBlock that prevent telemarketers from making calls to people who are on the Do Not Call list. Compliance Systems lists are electronically updated to reflect changes to the federal and state lists, and calls made to numbers on the list simply don’t go through. The technology works for computer-generated phone and fax calls, and for manually dialed calls.
NJBIZ: Originally, people who didn’t want to be contacted by telemarketers had to re-sign with the Do Not Call list every five years. But on Feb. 15, President Bush signed a law that keeps people’s names on the list permanently. How will that affect your business?
Ruby: It makes it more likely that I’ll continue to get more business for a long time. Before the Do Not Call legislation was enacted, my business was growing about 20 percent a year. Since it became clear that the law was being enforced, my business has grown at about 30 percent a year [the company currently posts about $600,000 a year in sales].
NJBIZ: Are you worried about liability issues if one of your clients somehow does place calls to people who are on the Do Not Call list?
Ruby: We advise them about the different requirements involved in telemarketing regulations. We don’t have any liability if their representatives don’t follow the rules.
NJBIZ: When you meet people at nonindustry gatherings and they find out what you do, do they get hostile?
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