Watch Out for Vanity Small-Biz Award Scams

Winning awards is an excellent way to build credibility for your small business.  Plus, it makes us feel good, too.  Who doesn't like to recognized for a job well done?  But be very careful if you get an email from the Small Business Commerce Association out of San Francisco informing you that you've won a "Best of Business" award. 

The emails state that a your business has been selected for the award and it provides you with a code to redeem your award.  However, when you go to the website and enter the code, you learn that you must pay $57 to $150 to receive the award.

According to the Better Business Bureau this is known as a vanity pitch.  You may be familiar with these types of pitches if you've ever received an offer for a special membership recognition in a "Who's Who" type publication or biographical directory.  There is always a catch -- meaning a cost to you.  Most likely, the recipients of these pitches are not selected by a special committee, but rather happen to have been listed on a purchased mailing list or their email address was harvested from various websites. 

So before you respond to any type of recognition pitch, do your homework.  For example, find out how many businesses are nominated for the award.  Ask how the award will be publicized and who has been recognized in previous years. A legitimate organization will happily provide that information for you. 

If the award or recognition publication is ostensibly offered through your industry, make sure to check with the appropriate trade association.  They will know if it is a legitimate organization or not. 

Finally, the Better Business Bureau is a good resource to learn whether there are complaints of fraud against the company or group.  Your state's Attorney General's office is another good place to check for complaints.