Is a BBB accreditation worth it?

As a business owner, you may be wondering if it’s worth the time and money to get accredited by the Better Business Bureau (BBB). The BBB is a nonprofit organization that focuses on advancing marketplace trust by providing consumers with reliable information about businesses. BBB accreditation signals that a business meets the BBB’s standards for trust and is committed to building trust with customers. But does the BBB seal of approval really matter these days? Here’s what you need to know about BBB accreditation and whether it’s worth it for your business.

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What is BBB accreditation?

To become accredited by the BBB, a business must apply and meet the BBB’s accreditation standards. This includes:

Being operational for at least 12 months

Maintaining at least a B rating or higher
Being transparent about business practices and honoring commitments
Advertising honestly

Being responsive to customer complaints
Meeting licensing and government regulations

Businesses must also pay annual accreditation fees to the BBB, which can range from a few hundred to a few thousand dollars depending on the size of the business. In return, accredited businesses can display the BBB seal on their website, social media, advertising materials, and other places.

What are the benefits of BBB accreditation?

There are several potential benefits that come with BBB accreditation:

Increased trust and credibility. The BBB seal signals to customers that your business meets the BBB’s standards. This can help establish trust, especially with new customers who aren’t familiar with your brand.
Higher BBB ratings. Accredited businesses must maintain at least a B rating or higher. Having a good BBB rating helps your reputation and makes customers more confident about doing business with you.

Removed BBB alerts. The BBB can put out alerts about businesses involvement in scams or fraudulent activity. Accreditation removes any current BBB alerts about your business.
Access to BBB advertising and logos. You can use official BBB logos and messaging in your marketing materials.
Increased exposure. Your business will be featured on the BBB’s website for your area, which can help drive traffic and awareness.

Dispute resolution. The BBB can help mediate any disputes with customers to avoid negative reviews or legal issues.

In essence, BBB accreditation signals that your business adheres to good business practices and meets high standards. This can influence purchasing decisions, especially for customers concerned about working with ethical, trustworthy companies.

What are the potential drawbacks?

However, BBB accreditation isn’t universally seen as a necessity for every business. Here are some of the potential drawbacks:

Costs. The annual accreditation fees, which can cost over $1,000 for larger businesses, exclude some small or new businesses.
Time commitment. The application process can take 2-4 months and you’ll need to provide detailed information about your business’s history, practices, and background.
Ongoing requirements. To maintain accreditation, you’ll need to continue meeting the BBB’s standards, which requires an ongoing time/resource commitment.

Required mediation. You’ll have to commit to mediating any disputes filed with the BBB, even if you already have policies for dealing with customer complaints.
Negative reviews still possible. Accredited businesses can still receive negative reviews on their BBB profile, which are prominently displayed.
Consumer skepticism. Some consumers are skeptical of the BBB’s accuracy and relevance in the age of online reviews.

The time, money, and effort required for accreditation may not pay off for some businesses depending on their circumstances. And accreditation alone won’t prevent negative reviews or complaints if customers have bad experiences.

Is BBB accreditation required?

No – BBB accreditation is voluntary. It’s not needed to operate your business or establish your reputation. Many successful companies choose not to get accredited. For example, some well-known major brands like Starbucks, Costco, and Hilton Hotels are not BBB accredited. So you can absolutely run a trustworthy, ethical business without the BBB seal.

When is BBB accreditation most valuable?

While not required, BBB accreditation can be more useful in certain situations:

You’re a new, lesser-known business trying to demonstrate trustworthiness.
You operate in an industry with high consumer distrust, like auto sales or home improvement.
Your target audience skews older or values traditions like the BBB.

Your business has received complaints you want to proactively address.
You want to reassure customers you meet high standards before they buy.
Your competitors are accredited and you don’t want to be at a disadvantage.

In these cases, the time and money invested in accreditation may pay dividends by boosting your reputation and giving customers more confidence to buy from you.

Should you get BBB accredited?

Here are some key questions to consider when deciding if BBB accreditation is right for your business:

Will the costs of accreditation provide enough potential benefits for your business?

Do you have the time to go through the application process and meet ongoing requirements?
Is building formal trust through the BBB valuable for your brand?
Is your target audience familiar with and influenced by the BBB?

Could accreditation help you address past complaints or build trust as a new business?
Are your competitors accredited?
Would you use BBB’s mediation process to resolve disputes?

Take time to weigh the pros and cons based on your specific business situation. Accreditation makes the most sense for businesses that want to proactively communicate trust to customers concerned about reputation and strong business practices. Ultimately the value comes down to whether accreditation will provide enough reputational benefit to justify the investment.

How to become BBB accredited

If you decide to seek BBB accreditation, here is an overview of the process:

Submit an application and pay your accreditation fee. Fees vary by business size and start at around $200 for small businesses.

Provide in-depth information about your business. This includes ownership, operational history, licensing, policies, complaints, and more.
Pass a BBB Standards compliance review. The BBB reviews your business practices against their accreditation guidelines.
Respond promptly to any concerns or questions from the BBB. This helps demonstrate your reliability and commitment.

Make any necessary changes to meet BBB standards. You may need to update advertising claims, revise policies, or implement complaint processes.
Get accepted as an accredited business. Once approved, you can display the BBB seal.
Maintain your accreditation by continuing to meet BBB standards.

It typically takes 2-4 months to become an accredited business once you submit your application. Be prepared to devote time compiling materials and providing detailed information about your business to pass the BBB’s review.

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The Bottom Line

BBB accreditation requires an investment of time and money, but can provide credibility and trust benefits, especially for new or lesser-known businesses. It sends a signal that your business adheres to good practices. Before pursuing accreditation, consider if the costs make sense for your brand and if your target audience will value the BBB endorsement. While not mandatory, BBB accreditation can be a strategic move for certain businesses to build customer confidence.