How a Better Business Bureau rakes in millions
The greater company Bureau can be a nonprofit, but behind the scenes it really is a machine that is money-making squeezing a lot of money away from organizations in exchange for its coveted stamp of approval.
That approval, referred to as “accreditation, ” does not come inexpensive. In 2013 alone, the company raked in almost $200 million in income — nearly all of which arises from ab muscles companies it oversees, according up to a CNNMoney analysis of IRS filings through the Better Business Bureau’s 102 U.S. Bureaus and office that is national.
Where in actuality the cash arises from: a source that is self-proclaimed of and impartial reviews of millions of companies in the united states, the Better Business Bureau gets nearly all its income from membership costs paid by thousands of businesses.
Joseph Ridout, a representative for watchdog team Consumer Action, stated this framework, where in fact the Better Business Bureau is “funded because of the dues-paying organizations rather than the customers, ” presents a “severe conflict of great interest. ” The Better Business Bureau, but, claims account dues have absolutely nothing regarding the reviews organizations receive.
With regards to the size of a company, account charges cover anything from a huge selection of bucks to significantly more than $10,000 per year. Continue reading
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