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Executive Pay in BBB

December 29th, 2013

Better Business Bureau is a non profit organization, which lets us us expect that its motive is NOT money making, but instead - providing an effective medium where consumer could complain if they have any grievance against malpractices of a business. You are not alone along this line of thinking.

If you google and research enough about Better Business Bureau, or, if you had a direct experience on dealing with BBB, you will understand that, BBB helps neither the business nor the customers of the business. Its whole business is to convince or somehow "arm twist" the business into "purchasing" a BBB accreditation. The money paid by the business against a BBB accreditation is proportional to the size of the business.

One of our readers have written how BBB attempts to arm twist businesses into "buying" its accreditation.

Within several weeks after placing my first ads, I received a call from a woman who told me she was with the Better Business Bureau. Her attitude and tone of voice were that of a holy inquisitor. She asked me all sorts of snoopy, prying questions and seemed to take offense when told her I was not keen on being interrogated and I asked her how I could tell she was really with the BBB. She replied, “just phone me back at the number you see on your cell phone and it will prove it is me!” (Huh?) She began to tell me how important it was to become “accredited” and her tone of voice informed me that I would be in big trouble if I didn’t go in for it, so I told her to send me a packet of her information and I’d be willing to look it over and consider it.

So why are the BBB executive hell bound to convince the business into purchasing business accreditation ? Before we go into the details let us take a look at the investigation done by ABC in 2010. ABC had investigated BBB in details and found that several business were downgraded to F when they did not agree to "buy" he BBB accreditation. Look at the BBB investigation video.

Part of the problem stems from the fact that the salaries of the BBB executives is tied to the number of the businesses it brings to its net. So, if no business "buys" the BBB accreditation, their executives get no salary or benefit. As an example, according to LA times,William Mitchell, the Top executive at Better Business Bureau's L.A. branch earned more than $400,000 a year, while his His San Diego counterpart roped in $206,000. Obviously, they "deserved" to be paid well because they they could bring more businesses accredited.

Next time, if you are a business owner, ask yourself a question - does BBB reaps profit for you or for the BBB executives.

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