Published: Jul 7, 2020 Last Updated: Aug 9, 2021 by Anita Campbell In Startup Advice
Deciding whether to get BBB accredited is an easy choice for some small business owners but others have questions. Is it worth the fee? What value does it really bring?
As you will see, getting accreditation from the Better Business Bureau (BBB) has a number of strategic advantages. Among other things, it adds credibility to your brand. It builds trust with the public. It also helps your business attract new customers.
You have probably seen the familiar blue and white BBB logo or seal. Businesses display this seal for one reason: the public tends to place trust in a BBB accredited business. The seal is one way that consumers sort out credible, responsible businesses from irresponsible scams and fly-by-night outfits. However, businesses must earn the right to display the BBB seal, and that comes only after going through the accreditation process.
In this article we explain how accreditation works, the value it brings, and how to get BBB accreditation.
What Does the Better Business Bureau Do?
The BBB does many things, but one important role is to serve as a central information point between businesses and the public. Founded in 1912, the Bureau says its vision is for “an ethical marketplace where buyers and sellers can trust each other.”
The BBB is structured as a parent organization called the International Association of Better Business Bureaus. Underneath it are about 100 separately-incorporated local organizations in the US, Canada and Mexico. Its non-profit arm is the BBB Institute for Marketplace Trust which promotes ethical business standards. Among other activities:
The BBB maintains a directory of over 5 million business profiles where consumers can research a business.
Consumers can file complaints, and the BBB gives companies a way to respond. The BBB offers mediation and arbitration to help resolve disputes.
Consumers who verify their identity can leave reviews about vendors on the BBB website.
The Better Business Bureau rates businesses from A+ to F, based on a 17-point scale.
The BBB provides a designation called “accreditation” for select companies.
What Does BBB Accreditation Mean?
BBB business accreditation means your company has met the BBB’s requirements and specifically been granted accreditation status. This involves completing an application form, supplying the required information, undergoing a check on your business, and meeting the BBB’s standards. Accredited businesses must also pay a fee and renew annually.
After that, a BBB accredited business gets special marketing privileges and other advantages.
Why Get BBB Accreditation?
Accredited BBB businesses get several benefits, including:
Consumer Trust. Businesses get the right to associate their brand with the BBB brand, which is synonymous with trust. For example, accredited businesses can display the “BBB accredited business” logo on their front door, website and other places. Consumers look for this Seal.
Competitive Advantage. Accreditation is exclusive and differentiates your business from competitors. Around 400,000 businesses are accredited, according to the BBB website. When you consider that this number is less than 3% of all companies, it is easy to see how those that get accreditation stand out from peers.
Reputation Management. Accredited businesses get extra points toward their BBB rating. Ratings are separate from accreditation. But when a business puts itself through the accreditation process, the BBB is able to assess trustworthiness directly and may award a higher score.