What is VoIP?

If you run a small business, chances are you’ve heard the term VoIP—but what does it actually mean, and how does it compare to a traditional landline phone system? Let’s break it down in simple terms, so you can understand whether it’s the right fit for your business.

What is VoIP?

VoIP stands for Voice over Internet Protocol. In plain English, it means your phone calls travel through the internet instead of copper wires in the ground. If you’ve ever used Zoom, ReachifyAI, Skype, or RingCentral to make a call, you’ve already experienced VoIP in action.

Instead of plugging into a wall jack, a VoIP phone connects to your internet network. This allows your business phone system to live in the cloud, giving you more flexibility and features than traditional landlines.

VoIP vs. Landline: What’s the Difference?

At first glance, they feel very similar—pick up the phone, dial a number, and talk. But behind the scenes, they work differently:

• Landlines use physical phone lines made of copper or fiber. They’ve been around for over a century and are extremely reliable.
  
• VoIP phones use your internet connection to make and receive calls.
  

Here’s a quick way to tell them apart:

• If your phone plugs into the wall with a standard phone jack (RJ11), it’s likely a landline.
  
• If it plugs into your router or connects over Wi-Fi, it’s a VoIP phone.
  

Where Landlines Still Make Sense

Landlines aren’t going away completely, and there are a few cases where they can be handy:

• Fax machines: Many older fax machines still require traditional phone lines. (Though eFax and digital fax services now solve this issue over VoIP.)
  
• No internet dependence: If your internet is unreliable, a landline will keep working during outages.
  
• Simplicity: For very small offices that don’t need extra features, landlines can still do the job.
  

Where VoIP Shines for Small Businesses

For most small businesses, VoIP offers major advantages that landlines can’t match:

Cost Savings
 VoIP calls usually cost less—especially for long-distance and international calls. You’ll also save by not having to maintain separate phone line infrastructure.

Flexibility & Mobility
 With VoIP, your “office phone” can ring anywhere—on a desk phone, your laptop, or even an app on your smartphone. Perfect for remote teams or owners on the go.

Advanced Features
 Features like voicemail-to-email, call forwarding, auto-attendants, call recording, and integration with tools like CRM systems are often included at no extra charge.

Scalability
 Need to add another phone line for a new employee? With VoIP, it’s as simple as updating your account—no technician required.

Modern Support
 Many VoIP systems can integrate with AI features, helping small businesses serve diverse customers more effectively.

The Bottom Line

VoIP and landlines may feel similar when you pick up the phone, but VoIP unlocks powerful tools designed for the way modern businesses operate. While landlines still have niche uses (like old fax machines or backup during internet outages), most small businesses find VoIP to be more affordable, flexible, and feature-rich.

If you want a phone system that grows with your business, keeps you connected on the go, and helps you look more professional to customers, VoIP is the clear choice.