The BBB and Your Business
 By Lee S. Shaffer

Thinking about joining the Better Business Bureau? This primer will help you decide if a paid membership is the right thing for your small business.

How does the BBB rate businesses?
The BBB reports on millions of American businesses using a grading system of A through F. Those grades are closely tied to the number of complaints the BBB receives from consumers.

A high grade usually indicates that the BBB has processed few (if any) complaints for a
given company.

It’s important to note that BBB grades are tied to business practices. An A grade suggests that a business is ethical and trustworthy, but it does not reflect the quality of goods or services.

The BBB does not provide rankings or endorsements.

How do I become a member?
Any business can register with the BBB for free. Registering will earn your company a report on the BBB.org website—that is, if there isn’t one already.

Companies that have been in business for more than a year and have a B grade or better qualify for accreditation (which is a paid membership you must apply for).

What does accreditation cost?
It varies.

The BBB is a decentralized organization with local offices around the country. Those local offices are independent entities with pricing structures that vary by region. Most offices require a small application fee (around $50) to handle processing costs. Once the application is approved, you’ll pay an annual fee that depends on the size of your business.

For an additional annual fee, a BBB-accredited business can buy a special seal to display on
its website. The seal is live, so customers can click it to directly access the company’s report
on BBB.org. Live seals make it easy for customers to do their homework on your
company’s reputation.

What are the benefits?
Careful consumers have always researched businesses before signing a contract or making a
large purchase.

In a down economy, there are more careful consumers. In fact, the BBB reported that in 2009 its website received more hits than ever before.

As a condition of their membership, BBB-accredited businesses pledge to resolve complaints with all customers. That means your potential customers know they have recourse if they have a problem.

Weighing your options
Since the BBB’s inception, the way in which consumers research businesses has evolved. Many turn to websites like Yelp to read about other customers’ experiences with a given company.

So how do you know if your BBB membership is worth your money and effort? Consider
your context.

Do you work in an industry plagued by dishonesty? Movers, contractors or Web merchants might need that BBB seal to establish trust with nervous consumers. A rule of thumb is to research your competitors’ status. If they’re accredited, there’s a good chance that your business should be, too.

You might want to try it for a year. You can always drop the accreditation if you don’t see enough bang for your buck.

Still not sure?
If you want another opinion about whether BBB membership might benefit your small business, ask the AFS ProTalk consultants. You’ll get straight answers customized for your industry and business.

The specialists are just a phone call or keystroke away. And unlimited access to the ProTalk consultants is included in the cost of your AFS membership!

(Posted May 2010)

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