Yelp’s Verified Trade Licenses Help Businesses Gain Consumer’s Trust

Part of the advantage of having the Internet in the palm of our hands is the convenience of looking up businesses quickly and easily. Within seconds of research, we can discover a business’s location, hours of operation and personal reviews and photos from other consumers.

Yelp, the popular ratings and review platform for restaurants and service businesses, has added an additional component to such reviews. The company recently introduced Yelp Verified Licenses, which confirm a business’s valid trade license to perform their marketed service in the state they serve. The expectation is that such verification will help build consumer trust in different local businesses.

Verified companies will showcase a blue shield checkmark badge directly next to their business name (shown below). Users can click the badge to reveal additional information regarding the company’s licensing. Service providers include contractors, plumbers, movers, childcare and more.


During early experimental stages, Yelp described the badge as helpful to both consumers, as well as the business. For contractors, specifically, consumer engagement actions (clicks, calls, etc.) reportedly increased by 24%.

According to the company’s Director of Product, Alon Shiran:

“Building on the significant growth of the home and local category, we’ve been partnering closely with business owners across the category to better understand their needs and build products that allow them to better tell their story and increase trust with consumers.”

To receive a Verified License badge, companies must apply through Yelp directly, who will then manually verify the license. The product is currently only accessible for specific service categories in Arizona, California, Florida, Georgia, New York, Texas and Washington for $1 per day, with availability in additional states coming soon.

Google offers businesses a similar licensing program through their Local Services ads. To utilize this advertising, businesses have to pass Google’s qualification process, including background and insurance checks, for their business category.

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