Business Messaging Blog | Sakari

Understanding Phone Number Types: Local Rate vs Toll-Free | Sakari

Written by Adam Horsman | Jun 26, 2023 4:00:00 AM

Three types of phone numbers are used for bulk texting: 10DLC, toll-free, and short codes. Each comes with strengths and weaknesses, making each well-suited for particular industries. Selecting the right one is essential in determining the success of any SMS campaign. Find one that suits your company’s needs with Sakari.

Why Do Phone Types Matter?

When starting any SMS campaign, you’ll choose between one of three phone number categories. They vary greatly in cost, features, and efficiency. What’s best for one company may not suit the needs of another, so it’s vital to use one that can handle your company’s. Moreover, they each take varying timespans to get verified. While you can start texting within a few days with some numbers, others will take weeks to months.

10DLC

Outside of SMS tech, 10DLC numbers are generally called local area numbers. They start with a three-digit area code, a three-digit prefix, and a four-digit root. Almost everyone has a 10DLC number for personal use.

For SMS marketing, 10DLC numbers have many qualities that make them more popular than their counterparts.

  • Cost-effective: 10DLC numbers are substantially more affordable than other numbers.
  • Relatable: A local area code can convey a neighborly presence for small businesses that rely on community involvement.
  • Verified Fast: 10DLC numbers are verified in 3-5 days. This is much faster than its counterparts. For companies who want to start texting right away, 10DLC is the best option.

However, 10DLC has a few negatives as well.

  • Slow: 10DLC can’t text as fast as other numbers. It can only send one text message per second. This is acceptable for small businesses but not so much for enterprises.
  • Customer Costs: Unlike toll-free, callers may have associated costs with calling in.
  • Long: These numbers are longer and more random than their counterparts, so customers may need help remembering them.

In general, 10DLC numbers are well-suited for small businesses that use texting to complement communication, such as those in the healthcare, real estate, and service industries.

Toll-Free

Toll-free numbers are ten digits long but always start with 855, 888, 877, 866, 844, or 833. They were initially designed to incentivize prospective callers with cost-free dialing. People don’t care much about who pays for calls today, as tolls are (for the most part) a thing of the past, yet toll-free numbers are still common. This is because they still offer many pros, even if their initial

  • Faster: These numbers can send about 25 texts per second. This can be a suitable option for companies simultaneously communicating with hundreds of customers.
  • Reputation: Exclusively used by companies, toll-free numbers have a professional reputation.
  • Texting and Calling: Unlike short codes, toll-free numbers are calling-capable.

Despite these excellent benefits, toll-free numbers come with several downfalls.

  • Slow to verify: Toll-free numbers can take weeks to be verified by Zipwhip.
  • Pricey: While they cost less than short codes, they are less efficient overall. Toll-free numbers may not be well-suited for small businesses, especially those less reliant on SMS.

Toll-free numbers are excellent for companies wishing to bridge the gap between short codes and 10DLC.

Short Code

Short codes are 5 or 6 digits long and emphasize texting speed. They are lightning-fast, making them suitable for enterprises and high-volume businesses. Some short codes are customizable to display industry-specific words like “latte” or “chair.” Unlike 10DLC and toll-free numbers, short codes can’t be used for phone calls. They make up for it with the following features.

  • Fastest: Short codes can send hundreds of texts per second, making them the quickest option for texting.
  • Memorable: It’s a lot easier to remember five numbers than ten. Their short size ensures subscribers have a better chance of memorization than toll-free and 10DLC.

Of course, there are a few disadvantages.

  • Expensive: Short codes cost substantially more than other numbers. While companies could share short codes in the past to save, that’s no longer the case.
  • No Calling: For companies wanting to call and text with the same number, it’s just not possible with short codes.
  • Long Wait: Short codes take around 4-6 weeks to pass the verification process. Carriers verify directly to ensure that only the most trustworthy companies use this high-volume texting tool.

A short code for large companies and enterprises that send thousands of text messages is the most effective. It’s snappy, fast, and is among the most potent SMS assets.

What Phone Number Type is Right for You?

Ultimately, the correct number depends on your organization’s priorities, resources, and scale. This extensive list of pros and cons shows that every number has advantages and disadvantages. We can still make some recommendations.

Small businesses and startup-sized companies benefit from 10DLC as long as they don’t require sending many texts simultaneously. 10DLC is cost-effective, reliable, and easy to use. It’s also a good choice for beginners to SMS; their low cost makes them well-suited for the role.

Meanwhile, toll-free numbers are great for almost any company due to their versatility. They cost a little more than 10DLC, but they provide various benefits. However, their unpredictably long verification process may make them frustrating for eager newcomers.

Short codes are the best option for SMS-reliant companies who need to take advantage of everything texting offers. With its fast delivery speed, it’s a welcome addition to any large organization conversing with an equally large audience. Unfortunately, their high-cost and slow-verification speed makes them inaccessible to some organizations.

Leverage SMS with Any Phone Number Using Sakari

With Sakari, any organization can harness the power of SMS. Our extensive A2P texting platform allows two-way texting, MMS, autoresponders, and more. Each is easy to use and implement into a broader marketing or communication strategy. Sakari has many integrations with HubSpot, Pipedrive, and other platforms to ensure seamless SMS tools into a pre-existing workflow.

Want to learn more about Sakari? Reserve a demonstration today for a hands-on showing.

FAQs About Local vs. Toll-Free Numbers vs. Shortcodes


1. What’s the difference between local numbers and toll-free numbers?

Local numbers have a specific area code and are ideal for businesses targeting a local customer base and building a local presence. Toll-free numbers allow callers from anywhere to contact the business without being charged, making them great for national customer support and projecting a professional image.

2. Are toll-free numbers more expensive than local numbers?

Yes, toll-free numbers are generally more expensive as businesses cover incoming call charges, while local numbers (10DLC) are more cost-effective, especially for small businesses focused on a specific region.

3. How fast can I start using a toll-free number for SMS marketing?

Verification for toll-free numbers can take several weeks, whereas local numbers (10DLC) are verified within a few days, offering faster access for businesses needing immediate SMS functionality.

4. Can I make phone calls with a short code number?

No, short code numbers only support SMS and MMS messaging. Businesses needing both voice calls and texting should opt for local or toll-free numbers instead.

5. What is the best phone number type for a small business?

Small businesses benefit most from local numbers (10DLC), which are cost-effective, provide a local presence, and are verified quickly. Toll-free numbers are better suited for businesses with a national reach or higher volumes of customer support needs.

6. What are the benefits of using a toll-free number?

Toll-free numbers enhance accessibility by allowing callers to reach your business without incurring charges. They also create a professional image and are ideal for handling large volumes of incoming calls from a broad customer base.

7. Can I use short codes for marketing campaigns?

Yes, short codes are ideal for high-volume marketing campaigns. They allow businesses to send hundreds of messages per second, perfect for real-time promotions or urgent outgoing SMS blasts.

8. What are vanity numbers, and how do they differ from toll-free numbers?

A vanity number is a customizable type of toll-free number (e.g., 1-800-FLOWERS) that is easy to remember, enhancing brand image and making customer engagement simpler. Vanity numbers typically cost more than standard toll-free numbers.

9. Are local numbers or toll-free numbers better for customer support?

Toll-free numbers are usually better for customer support because they eliminate call charges for customers and offer nationwide accessibility. Local numbers are better for businesses focusing on a specific area or local customer base.

10. Can toll-free numbers receive SMS messages?

Yes, toll-free numbers can receive both SMS and voice calls, making them versatile for business communication. This dual functionality makes toll-free numbers an excellent option for businesses needing a multi-purpose phone system.