So picture this...you are a new coach or creative, super excited because not only are you FINALLY starting you passion-based biz but you have your first few clients! (congrats btw…) You start working with Jane and things seem to be going great for your first few sessions, she is taking your advice, implementing your strategies, and things are happening!
Jane goes through some personal stuff and stops following through, results cease, and she gets upset. She wants her money back. She isn’t happy with your services.
She wants a REFUND.
Uh-oh. So what happens now? Well, that depends on your REFUND POLICY. My what you may be asking? Your refund policy. That oh-so-very-important clause in your contract that Jane has signed. (If you have no idea what I’m talking about right now you should get in touch cause we need to chat).
If you do have a custom contract written for your biz with a refund policy, there is a good chance you have a NO REFUNDS policy, which especially in coaching and service-based business is often the way to go to really protect yourself.
After all, you’ve already spent a lot of time working with Jane, and now she expects you to just give her money back?
Luckily, at this point you can refer her to the contract that she signed and nicely state there are no refunds and perhaps you can figure out a way to continue to work together.
Or if Jane is a stick-in-the-mud, she may just peace out. That’s fine too, because you have been paid! While Jane may try to contact her credit card company, PayPal, etc. for a refund, the fact that you have a signed contract in place will go a long way to protect you and is documentation you can provide (which is reason #895032843209 why having a strong custom contract in place for your business is an excellent idea).
But what happens if you haven’t (YET) quite gotten your legal stuff together and didn’t have a contract or refund policy in place?
Well, this could be no fun. You could refund her the money and take it as a loss. Or you could say no.
And then Jane may take it upon herself to try to get her money back either through contacting their bank, credit card company, or PayPal, Square, etc. Whatever Jane does it may create a nightmare for you and end up with you spending more time and money than you ever wanted to. No fun right?
Luckily a refund policy is not tricky - just make sure your contract includes your policy! No refunds AT ALL. Refunds within the first 30 days. Partial Refunds after 6 weeks. Etc. You get to decide what you are comfortable with. Put it in your contract. Have it signed. Donzo.
And then you get to sleep better knowing that you are protecting yourself from the Janes that will at some point walk through your door.
PROTECT YOUR PASSION!