Toll Free or Local Number: Which One Does Your Business Need?

Something as simple as a phone number isn’t often on the minds of entrepreneurs starting a business for the first time.

With most business tools found in the cloud or on your computer, you probably won’t need to worry about your phones until you have at least a few customers.

As your company grows and evolves, the number of phone calls you have to handle will increase, and having a professional business number provided by a reliable virtual phone number service will prove to be invaluable.

This leaves you with an important choice to make: should you go with a local or toll-free phone number?

These different types of phone numbers provide a similar user experience, but offer a diverse range of opportunities along the way, making it critical that you consider them carefully.

What Are They?

When setting up a business phone system, you’ll need to choose the right type of business phone number, and the two most common options are toll-free numbers and local phone numbers.

Both can also serve as a second phone number for your business that can help you keep your personal line private while still handling professional calls.

Let’s first take a look at what these numbers are.

Toll-Free Numbers

As the name suggests, toll-free numbers are a type of phone number that doesn’t cost your customer anything to dial.

They are most often used for customer service hotlines, giving people free calls to reach your business.

Unlike local numbers, toll-free numbers start with special three-digit codes such as 800, 888, 877, 866, 855, 844, or 833. Each code is different, so a 1-800 number is not the same as a 1-888 number.

Among these, the original “800” toll-free area code remains the most recognizable, and you can get this toll-free number from online phone systems like Talkroute.

Toll-free numbers can manage both incoming and outgoing calls, making them a flexible part of any business phone system.

Wireless callers may still pay for airtime unless they have unlimited plans. Some toll-free numbers offer SMS support, allowing them to be text-enabled to receive messages along with handling inbound calls for a premium price.

Vanity Numbers: A Special Kind of Toll-Free Numbers

You can also get a vanity number, which is a customized toll-free number that spells out a word or brand name using the keypad.

These numbers work well in marketing campaigns because they are easy to remember and connect directly to your business.

Since customers prefer simple and memorable contact options, a vanity number can help you build a more professional image. The vast majority of callers also find it easier to recall a word or phrase than a string of random digits, which means they are more likely to call back.

For a business owner, this makes vanity numbers a smart choice for standing out and making it simple for people to reach you.

Book a live demo today and see how Talkroute makes it easy to set up a toll-free number that builds trust with every caller.

International vs Domestic Toll-Free Numbers

If your business takes calls from different regions, it helps to know the difference between domestic toll-free numbers and international toll-free numbers.

A domestic toll-free number works only inside one specific country. For example, if a software company sets up a U.S. toll-free number, only callers within the U.S. can reach it without paying.

These numbers are country-specific and give businesses an easy way to connect with local customers.

An international toll-free number, on the other hand, lets people in multiple countries call the same business for free. This is useful for companies that serve customers across borders and want to avoid asking them to make costly long-distance calls.

With an international number, the business covers the charges, so customers can reach support no matter where they are.

Watch how Talkroute makes toll-free numbers flexible with call forwarding, voicemail, and extensions.

Local Phone Numbers

Local numbers are a type of business phone number tied to a specific location. They use a local area code that connects your business to a region, giving you a local presence and making it easy for people nearby to reach you.

In the US and Canada, area codes represent regions, such as +1 (415) for the San Francisco Bay Area. These codes help direct incoming calls to the right location, making it clear where the call is being placed or received.

Many businesses keep the first local phone number given with their landline service when opening an office, store, or warehouse.

You can also choose to have multiple local numbers, enabling your company to establish a presence in a variety of localities.

Since these are treated as local numbers, you can also receive calls from customers without them needing to pay for long-distance calls, which encourages more customers to get in touch.

While they are harder to customize, some providers offer vanity options for local numbers upon request. The good news is that Talkroute does offer its unique local vanity number services upon request.

Watch how Talkroute makes it easy to set up local numbers without complicated installations.

Toll-Free vs Local Number: The Pros & Cons

When picking a business phone number, you’ll often choose between a toll-free number or a local number. Both have their own strengths and drawbacks, and the right choice depends on how you want customers to reach you.

Let’s look at the pros and cons of each so you can decide which works best for your business.

Pros and Cons of Toll-Free Numbers

Like any business service, there are pros and cons when it comes to toll-free numbers. For many entrepreneurs, these factors help decide whether toll-free is the right choice.

The type of company you run will influence how your phone service should work. Below are some examples of the benefits and possible issues.

Pros

• Free to the customer: Customers do not pay when they call, which improves customer accessibility and makes it easier to reach customers. This often leads to higher customer satisfaction because people know they can contact you without extra cost.
• Easy to remember: With custom options and vanity numbers, toll-free numbers are simple for customers and even business partners to recall.
• Toll-free numbers look professional: A polished business phone number creates a strong first impression and helps small companies appear more established.
• They garner more trust: Toll-free numbers are viewed as reliable, which encourages more people to call, whether for inbound or outbound calls.

Cons

• Can be expensive: If you want a number that truly reflects your business, you usually have to pay extra. Most phone companies charge more for toll-free numbers, but Talkroute includes them at no additional cost.
• Are very exclusive: The best numbers are in high demand, which drives up prices and makes it harder to secure the exact toll-free number you want.
• Can make you look cold: Some customers may assume a toll-free number connects them to an automated system instead of a real person. This can discourage them from calling or even cause them to hang up before reaching you.

Pros and Cons of Local Numbers

Having a number that is tied to your location isn’t without its flaws, either.

Your business will benefit from having something that makes customers feel comfortable, but it needs to reflect the level of professionalism they will experience when they make an effort to get in touch.

Pros

• Cheap or free: With a local number, you usually only pay to make outbound calls, while incoming calls from customers are free.
• Know you’re local: A local area code makes it clear to customers that they are calling someone nearby, which builds trust and familiarity.
• Expansion: Businesses with multiple locations can have more than one local number. This helps keep departments and branches separate while maintaining a local presence.
• Small town service: Many customers prefer supporting local businesses. A local phone number makes your company feel warm, approachable, and community-focused.

Cons

• No customizability: Local phone numbers don’t offer much flexibility. Even with providers like Talkroute offering vanity options, you’re usually limited to changing the last four digits.
• Harder to remember: Local numbers are often random and harder for customers to recall or write down quickly. Choosing one with a simple sequence helps.
• Can cost them money: Some mobile service providers charge for local calls, which can discourage customers without airtime from reaching out.

It’s important to carefully consider the pros and cons of toll-free and local phone numbers when deciding what will best work for your business.

Fortunately, the process of securing your new phone number is fairly straightforward, whether you choose to go with a local or toll-free option.

How to Secure Your Number

Securing a business phone number is simple, but knowing your options helps you choose the right one. Here’s how you can get started.

Securing a Toll-Free Number

You don’t have to spend too much to get a great number, and with the recent addition of the 833 toll-free area code, small businesses have a good chance of finding exactly what they want.

The process starts by choosing a company, like Talkroute, to get your number from. In most cases, the first step is selecting the toll-free area code, which goes at the beginning of your number.

Popular options include 800, 888, and 877, though newer codes like 833 also help expand availability. Unlike local numbers that tie you to a specific region, toll-free numbers give your business a national presence.

After picking your code, you can choose between a randomized but memorable option or a vanity number that spells out something unique.

Vanity numbers are harder to secure but are often more recognizable. Once you’ve chosen your number, you’ll select the pricing plan that matches your needs.

Explore our plans and find the best option for adding a toll-free number without extra hardware.

Recommended reading:

Get a Toll-Free Number for Business with Talkroute: A Quick Guide

Securing a Local Number

Choosing a local number isn’t too different from picking a toll-free one. In this case, though, you will begin the process by choosing a specific area code or location.

It’s best to choose a location that relates to some aspect of your company, even if it is merely where your target market resides, as this makes it worth having a local number.

These numbers begin with digits that represent the area they cover, such as 1-310 for Los Angeles and 1-404 for Atlanta, with the numbers that come afterward localizing it even further.

Unlike toll-free numbers, local numbers offer limited customization. You’ll usually pick from a list, though you can request a custom option if available.

Normally, you would be at the mercy of what number options a provider has available, but Talkroute has excellent memorable local numbers ready for registration in most area codes.

Most local numbers can send and receive SMS, with pricing similar to toll-free numbers. While you can get a local phone number from a traditional landline, it’s usually more expensive than a virtual phone service and lacks features like using your cell phone to talk to customers.

Explore Talkroute’s plans and see how local numbers are included with advanced call features.

Use Case Examples of Toll-Free and Local Numbers

Choosing the way that you communicate with your customers isn’t a simple task, and not everyone will be able to do it by merely looking at the pros and cons. To give you one final push, you can find some example use cases below.

While they don’t represent real businesses, they can give you an idea of when it would be best to use these phone numbers.

For a Small Store

• Name: William’s Farm Store
• Employees: 5
• Sales Channels: Local Store Only

This local farm store doesn’t have many employees, which means that they probably aren’t too busy. Their only sales channel is a local store, making it crucial that they appeal to customers who are nearby, without making them feel like a huge company.

A local phone number would be best for them, especially if they want to continue without expanding their trade.

If they were ever to make the move online or into large-scale wholesale, having a toll-free number would make a little bit more sense.

For a Medium-Sized Company

• Name: Big Town Finance
• Employees: 430
• Sales Channels: Online, Telephone Sales

Big Town Finance is a medium-sized company with a large number of employees. This means that they are getting a lot of customers, and, given that their sales channels will both involve calls for proper communications, having a professional number will be crucial.

Online businesses don’t often need to give away their location. For these reasons, a toll-free number would be best.

Companies like this often rely on custom phone numbers as a critical component of their advertising.

For an Online Store

• Name: Binkies eEmporium
• Employees: 2
• Sales Channels: Online Only

This online store could get loads of business, despite only having a couple of people working for it.

Along with this, online stores that don’t represent a physical store often do not need to give away their location, as they will only have a warehouse or maybe even a garage for their operations.

Customers buying things from e-commerce websites don’t tend to be happy paying to call customer service.

This makes a toll-free phone number perfect for Binkies eEmporium, even though they only have two employees.

Recommended reading

How to Get a Second Phone Line for Business in 3 Easy Steps

10 Reasons Why Vanity Numbers Are Worth Your Money

Make Your Business Easy to Reach With Talkroute

Talkroute makes it simple for any business to set up toll-free numbers and local numbers that fit the way you work.

Whether you want to give your company a national presence with a toll-free line or connect with your community through a local area code, Talkroute has you covered.

With built-in features like call recording, voicemail, texting, and video meetings, Talkroute is more than just a phone service.

It is a complete business communications tool. Your team can talk, text, and meet with customers from anywhere while keeping every interaction organized and professional.

Start building a stronger connection with your customers today by choosing a Talkroute toll-free or local number that makes your business easy to reach.

Start your trial today and test how Talkroute makes toll-free numbers and local numbers easy to manage.

FAQs About Toll-Free vs Local Numbers

What is the difference between a toll-free and a local number?

A toll-free number lets people call without paying for the call, while the business covers the cost.

A local number is tied to a specific area code, and callers may pay long-distance charges if they’re outside that area. Both can be used on mobile phones, but the experience for the caller is different.

Is it better to have an 800 number or a local number for business?

It depends on your audience. An 800 number can make your business look more national and professional, while a local number feels more personal and community-based. Some businesses even use both to connect with different customer groups.

Why would someone have a toll-free number?

A toll-free number is helpful for businesses that serve customers across many regions. It removes the worry of long-distance fees, which makes people more likely to call. It also gives the business a more established and accessible image.

Is it better to call a toll-free number?

Calling a toll-free number can be better if you want to avoid extra charges, especially from landlines.

On mobile phones, most plans already cover nationwide calling, so the difference is less about cost and more about the convenience and trust a toll-free number gives.