Toll-free phone numbers are everywhere: bank commercials, customer service hotlines, big brand websites. Local numbers are just as common for businesses that want to feel close to home for customers in a specific area. But which one makes sense for your customers?
We’ll break down the pros and cons of local vs toll-free numbers for business communication. Plus, we’ll show how they can help scale your business.
What’s the difference between local vs toll-free numbers?
To figure out which type of phone number is right for your business needs, it helps to understand how they work. Let’s start with local numbers.
What are local numbers?
Local numbers are associated with a specific location. That three-digit local area code immediately tells customers where your business is based. So, if you’re in San Francisco, CA, your local area code would likely be 415 or 628. New York City might have a 212 or 646 area code, while a company in Austin, Texas, might use 512.
Let’s explore the pros and cons of using local telephone numbers.
Pros of local numbers
Here’s a look at the main benefits of using a local phone number for your business.
- Local calls are more likely to be answered. People pick up the phone more when they recognize a familiar three-digit area code. It feels like a real, nearby business instead of a random or unknown number.
- Creates a local presence. You don’t need a physical office in every city you serve. A local number lets you show up in a specific area and reach customers there without being 100% tied to the location.
- Builds trust by giving the impression of being “closer to home.” A local area code can make your business feel more approachable and personal. That sense of familiarity helps people feel more comfortable calling you.
- Works well for local marketing and ads. When you run ads that feature your Google Business Profile, showing a local area code can help you compete with local businesses. It can also make it easier for people to call and book a service.
- Strengthens credibility for regional businesses. Local numbers can make your business feel more established in a community. This is extra helpful if you’ve just started serving a new specific geographic area and want to look legit from the start.
Cons of local numbers
While local numbers have their benefits, there are a few trade-offs to consider.
- Clients may incur fees for long-distance calls. If someone calls you from outside the area, their carrier may treat it as a long-distance call. That can be a small but real barrier that stops people from picking up the phone.
- Limited to a specific region. A local number points to one place. If you serve a wider area, it may not fully reflect all of the places your business offers its services. However, your business can always have more than one number with the right service provider.
- Businesses running in several regions may need multiple local numbers. If you advertise in more than one area, you may need a different local number for each. That means more numbers to manage.
How to get a local number
Until the late 1990s, businesses relied on traditional PBX systems. That meant getting a local number depended on which phone lines were available in a specific area. And setup involved working with a carrier and installing on-site equipment.
Now you can use VoIP technology. It runs over the internet by converting voice into digital packets, which removes the need for physical phone lines. That also makes it much easier to get a local number if you don’t live or work in a specific area.
With a hosted business phone system like Quo, formerly OpenPhone, you can buy local numbers in the US and Canada. There’s no hardware to install and no on-site setup. You just sign up, choose your area code, and then start making and receiving calls.
Learn more in our guide to traditional PBX vs VoIP.
What are toll-free numbers?
With a toll-free number, the caller won’t know your town or city. And, as the name suggests, fees aren’t charged to the caller. Toll-free numbers use a three-digit toll-free prefix, such as 800, 844, 855, or 866.
You can also get a vanity toll-free number, like 1-800-FLOWERS. These are easier to remember and are often used in ads and marketing campaigns.
For most businesses, North American toll-free numbers are the simplest option. One toll-free number lets anyone in a country or region covered by the North American Numbering Plan, or NANP, call your business for free. That includes the US, Canada, Puerto Rico, Jamaica, and the Bahamas
Global toll-free numbers work differently. They allow customers to call your business toll-free from 70+ countries using a single number, but they’re more expensive. Most come with a $200–$300 one-time setup fee, plus ongoing charges that vary by country. By comparison, a North American toll-free number with Quo costs $5 per number per month.
Pros of toll-free numbers
Here are the top toll-free number benefits for businesses that serve customers across the US and Canada.
- Makes the business look established and professional. A toll-free number can make your business feel larger and more established to callers, even if you’re a small or growing team.
- Helps build a global reputation. Toll-free numbers make sense if you have customers across different regions and want one number that works everywhere.
- No fees for national callers. This improves customer satisfaction since people can call you without worrying about long-distance charges.
- Easy to keep the same number as your business grows. Since toll-free numbers aren’t tied to a physical location, you can port them between service providers without changing the number.
- Works well for ads. They’re a good fit for advertisements like Facebook call ads. The Call now button makes it easy for users to instantly contact your business. And since the call is free and doesn’t show an unfamiliar area code, people may be more likely to dial.
Cons of toll-free phone numbers
- Outbound calls are more likely to be ignored. Some people associate toll-free numbers with telemarketers, spam, or robocalls. Because of that, they may be less likely to answer when you call them.
- Less focused on specific target regions. Toll-free numbers don’t include a local area code. For businesses that depend on local trust, calls can feel less personal or connected to the community.
- Toll-free minutes may be limited. Some providers allot a fixed number of toll-free minutes each month. Once you reach that limit, you’ll be charged per minute or required to upgrade. In contrast, a business phone system like Quo lets you receive toll-free calls for free. However, if your team calls anyone outside the US and Canada, international calling rates will apply.
How to get a toll-free number
Toll-free numbers are available on a first-come, first-served basis. With Quo, you can search for available toll-free or vanity numbers as you sign up and activate one right away.
Keep in mind, you can also use our phone picker tool. It lets you search and choose from thousands of numbers with 800, 888, 877, 866, 855, 844, and 833 toll-free area codes.
Phone number look-up
Because everything is set up online, there’s no hardware to install or technician needed. That means most businesses can start receiving toll-free calls in about 15 minutes.
How do customers think of local vs toll-free numbers
Let’s take a look at how you can expect customers to see your business if you call them on a local or toll-free phone number.
| What customers notice | Local number | Toll-free number |
|---|---|---|
| What area code | “This business is in my city or nearby.” | “I’m not sure where this business is located.” |
| How personal the interaction might feel | “This feels like a real, local business.” | “This feels more like a big company or telemarketer.” |
| How big the business seems | “This is probably a small or regional business.” | “This is probably a larger or established business.” |
| Whether calling feels low-risk | “Calling makes sense if I’m nearby.” | “I can call without worrying about long-distance charges.” |
| What the number seems best for | Local services, appointments, or community-based businesses | Nationwide sales, support, or general inquiries |
Should I get a local vs toll-free number for my business?
It depends. What we can tell you is that when deciding between a local vs toll-free number, you should ask yourself some important questions:
- Is my customer base local, or do I have customers across the US and Canada? If your customer base is local, then get a local number. If your customer base is nationwide or international, get a toll-free number.
- Is my company expanding across the country, and do I want to build a national presence? If not, get a local number. If your business is expanding, get a toll-free number.
When to use a local phone number
Local numbers make sense for small, local companies that conduct most of their business within specific cities or regions. For example, if you travel between New York and Chicago for business meetings, having local numbers for both regions can help you connect with your business partners or clients.
Similarly, if you have a physical location, office, or shop in that city, a local number lets your client base know you’re close by and easy to reach.
When to use a toll-free phone number
Toll-free numbers are great for businesses that don’t have an actual location but serve a wide consumer base across the US or Canada. They’re also a smart choice if you plan to scale, since they let people nationwide call you without worrying about long-distance charges.
For example, if you’re a software company and you offer customer support for your user base in the US, you’d likely find a toll-free number useful.
However, if you’re a local art agency, you likely wouldn’t need a toll-free number.
How to get both local and toll-free numbers with Quo
Here’s the deal: Choosing between a local vs toll-free number is important. But many businesses, big and small, benefit from having multiple numbers. For example:
- Use a toll-free number for incoming calls and customer support and a local number for outgoing sales calls.
- Share a number with your team to delegate responsibilities and set hours for each team member.
- Provide each rep with their own local number and personalized voicemail greeting for a professional touch.
- Route customer calls automatically with phone menus so callers reach the right rep. For example, when someone calls your local number, the call can be routed to a sales rep based in that same area. That way, callers reach someone local, which helps build trust.
And the best part? Having several numbers doesn’t have to break the bank. With Quo, you can get local and toll-free numbers in Canada and the US.
Whether you want a US toll-free number or a Canadian toll-free number, Quo provides a flexible business phone service. You’ll also receive toll-free calls for free. Just keep in mind, if you call outbound to numbers outside the US and Canada, you’re billed at international rates.
Get started in three simple steps:
- Sign up for an account with Quo. When you sign up, you can try Quo free for seven days.
- During signup, select your city or area code in the US or Canada to pick your phone number or choose a North American toll-free number.
- Finish the sign-up process and choose your preferred plan. Then, you can start calling and customizing your phone settings.
You now have a virtual phone number. If you run into any issues during the sign-up process, fill out this form to reach our support team.
With Quo, you’re able to support your growing business in more ways:
- Make and receive calls from your toll-free and local numbers via mobile phones, desktops, and other devices.
- Manage your business contacts and keep them separate from your personal contacts.
- Set up business hours for each number so you’re not getting calls when you’re off the clock.
- Forward calls to other phone numbers to make sure customers don’t fall through the cracks if you can’t pick up the phone.
- Prevent missed calls with Quo’s AI agent, Sona, that can answer calls when your team isn’t available to pick up the phone.
- Use one phone number on two phones or more to be flexible with how you answer calls and texts.
- Easily identify what phone calls need your attention with Call views.
- Summarize and transcribe calls automatically with AI, making it easy to get context on conversations.
- Automatically tag calls after they’ve finished with relevant labels such as “Billing issue.”
Ready to get your business number and start calling and texting within minutes? Get Quo today.
FAQs
Whether a local or toll-free number is the best choice depends on your business. Local numbers help build trust in specific communities since they make it clear you’re in the area. Toll-free numbers may convey the image of a more established business with a nationwide presence.
Your business typically covers all costs associated with toll-free calls. If you choose a business phone system like Quo, you’ll get access to unlimited inbound toll-free minutes.
With a toll-free number service like Quo, every rep can have their own phone number, or you can give them access to an existing shared number. Plus, you can assign separate numbers to different departments, like sales or support.
With a business phone system like Quo, you don’t need to switch numbers. Instead, you can buy more local or toll-free business phone numbers as your team grows.
“Toll-free” means the person calling your business doesn’t pay for the call. Instead, you’ll cover the cost.
Often, yes — but it depends on how you use the number. A local number usually means callers pay for any call charges through their own phone plan. Toll-free numbers work the opposite way — the business will cover the cost.
At Quo, every user you add to your plan includes one unique phone number. Plus, any toll-free calls your team receives are free. If your reps phone anyone outside the US and Canada, you’ll need to pay international rates for those calls.
Yes, toll-free numbers can support texting. Quo’s toll-free business numbers support both SMS and MMS messaging.
