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The coolest thing about being a candidate for a position that you’re relocating for (minus the thrill of a new city, new people, new life) has got to be a phone interview. I have recently gone through a total of six phone interviews for my newest position, and I’m here to tell you, it’s not scary. I used these tips to prepare, and now I have compiled a list of my own. (Thanks, Penelope, for getting me all squared away!)
Do you have any other tips for phone interviews? What is your preferred method of interviewing - in person or on the phone? Do you rock interviews or do they scare you?

These are great tips. Another one I'd add: Some employers will call you and want to do a mini-phone-interview on the spot, without warning (as opposed to scheduling it in advance). Don't be afraid to say that it's not a good time and ask to schedule it for later that day or the next day (or whenever) -- it's completely reasonable to wait until you've had time to prepare and compose yourself.
#3,4,5 are extremely good advice and one's I can personally say work. Smiling and water is half the battle of a phone interview. One thing that's also difficult is staying clear of the umm & like syndrome that plagues many of us. I'd also suggest to prepare notes and possible questions. Include things like the company's basic information their product offerings etc and have a few questions in mind. The last thing you want is to only think of one question and then have it answered during the interview itself.
I had an interesting opportunity yesterday to conduct 13 phone interviews for an office manager position at my company. Half way through, I had to step out for a phone interview in which I was being interviewed, so I got to see both ends of the spectrum at once.
From my experience yesterday, I would only add two points to this excellent list:
1. Do not use one word answers. The point of an interview is not only make sure you are qualified for the position, but to get to know you. Potential employers want to see your personality. If you get a question with a potential one-word answer (example: "Are you comfortable with technology?"), think of a fully developed answer (example: "Yes, I am very comfortable with general computer use because at my old job I had to use a computer every day and whenever we had a problem with a computer, I had to figure it out.") You don't have to be perfect at everything, but don't miss an opportunity to show your true colors.
2. BE POLITE! Out of 13 people I talked to yesterday, only two of them said, "have a great day" at the end of our conversation. Both of those people were exceptionally polite the entire time, which made their whole interviews positive experiences. You know what? I'm bringing them both in for interviews next week. You know who I'm not bringing in? A perfectly qualified woman who said, "Did you even look at my resume?" in response to one of my questions.

Tyler:
>>A perfectly qualified woman who said, "Did you even look at my resume?" in response to one of my questions.
Did you?
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Ruby @ Mobile Phone Tracking