Is BBB accreditation worth it for a small business?
It can be, if your customers check the Better Business Bureau before they hire, but judge it by the inquiries it brings, not the seal. Accreditation is a paid status: the business affirms it meets the BBB's standards, such as honest advertising and answering complaints the BBB forwards, and needs at least a B rating. The rating is separate: the BBB grades businesses from A+ to F, and says customer reviews are not used in that grade.
What accreditation means
The BBB's standards page says an accredited business affirms that it meets eight standards, and must keep meeting them: build trust, advertise honestly, tell the truth, be transparent, honor promises, be responsive, safeguard privacy and embody integrity. It also says not all businesses will qualify. The detailed requirements include:
- Selling for at least six months before applying, or having run a similar business with an eligible track record.
- Meeting all competency and trade licensing requirements.
- At least a B rating at every company-owned location and the headquarters.
- Changing, backing up or dropping advertising and selling practices when the BBB recommends it.
A rating is not the same as accreditation
The BBB describes a rating as its opinion of how a business is likely to interact with its customers. Its ratings page lists seven rating elements, and accreditation is not one of them; it also says a rating is no assurance of a business's reliability or performance. Separately, the BBB's Get Listed page offers a free BBB Business Profile to claim.
| BBB rating | BBB accreditation | |
|---|---|---|
| What it is | The BBB's opinion of how a business is likely to interact with its customers | A status the business applies for, affirming it meets the BBB's standards |
| Scale | A+ to F, or NR (No Rating) when there is not enough information | Accredited or not |
| Built from | Complaint history, type of business, time in business, transparency, honoring commitments to the BBB, licensing and advertising issues | Meeting the eight standards, including at least a B rating |
| Fee | None for the rating itself (a basic profile is free to claim) | Yes, based on factors including business size |
What it asks of you
The BBB says it charges a fee for accreditation, based on several factors including the size of the business, so ask your local BBB for the figure in writing. The larger cost may be time. The standards commit you to answering each complaint the BBB forwards, addressing every significant issue with documents that support your side, to mediation or arbitration when the BBB asks, and to honoring the outcome.
As general advice, that is easy for a business that already handles complaints well, and a useful discipline for one that does not.
How to decide
As general advice, accreditation tends to matter more where customers check credentials before a large or unfamiliar job, and less where they hire on a neighbor's word. Ask a few recent customers whether they looked at the BBB, and ask every new one how they heard about you; the related answer on the options for 'How did you hear about us?' covers the wording.
Then judge it like any paid listing: before you renew, count the inquiries that mention the BBB or its seal, and the jobs they became. The related answers on paid directory listings and on joining a chamber of commerce use the same test.
Sources
- BBB, "BBB Accreditation Standards"
- BBB, "Overview of ratings"
- BBB, "Submit a business to our directory" (Get Listed)
Related answers
- Are paid directory listings worth it for a small business?
- Is joining a chamber of commerce worth it for a service business?
- What answer options should 'How did you hear about us?' have?
SEO for service businesses
Get found on Google by the people already looking for what you sell, in the places you serve, and see which searches turned into inquiries.