There are five words that I don’t think
any entrepreneur ever wants to hear and those are “I’d like my money back.” Hey there it’s Nafissa Shireen and
welcome to Living Forward TV where we help you to create a thriving business you
absolutely love all around your personal freedom and today’s the second episode
in a two-part series all about refunds. A question I get asked all the time is
“what do I do when potential clients ask if I offer refunds?” and as much as nobody
really wants to discuss refunds it is so important to have that conversation in
your business because it does come up and last week we drove into what to do
when a client wants to know if there’s a refund policy before they buy and if you
haven’t watched it I’m going to encourage you to hit pause and go back
and watch it because we examine how to melt that objection away and I gave you
some scripts on how to do it that you could implement right away. But you know what? Sometimes, despite all good intentions the inevitable request for a
refund will come in and when they do you absolutely need to stick to your refund
policy and sometimes it’s going to make you unhappy if you have to give money
back and you’ve already invested your time or given access to your
intellectual property. And other times it’s going to make the client unhappy if
they don’t qualify for a refund when they want one but what’s really key here
is consistency because that’s what ultimately builds trust and trust is
what reduces or eliminates refunds altogether in the long run. And you may
be wondering: “Okay, well what should my refund policy be?” and as I said last week
the good news is it’s entirely up to you and it may be as simple as I don’t give
refunds or perhaps it’s a little bit more complex or maybe you have different
policies for different offerings. Whatever it is though you want to make
sure it’s well documented and in a place that your clients can see it before they
ever move forward with you, and you also want to make sure that it’s a place that
you can refer to and refer them to if the issue ever comes up. Now you might be
thinkin,g and it would be totally natural right, “I don’t want to give refunds but I
know that potential clients will want to see I stand behind my work”. Well that’s
what the second episode is all about, I have a few suggestions and ideas to help
you to inspire your own policies and in your
handout today I’m taking it deeper and I’m peeling back the curtain and I’m
showing you what my refund policies are including what’s written in my client
agreements. Now- I want to make something very very clear I am NOT a lawyer
everything I’m about to say and share with you are my opinions and how I run
my own business. Make sure that any policy you implement your business
especially ones that impact agreements and obligations, are reviewed by your own
lawyer so you know that they comply with all of your local laws. Now as we
discussed in our last episode when you provide services or access to your
intellectual property through content, downloads, videos, once it’s gone it’s
gone. You can’t get it back and that’s why I recommend having very tight refund
policies and I say policies because what’s appropriate can really differ
depending on what the offering is. Now for high-end 101 services such as
consulting, coaching, or other professional services like a
photographer, an architect, a designer where it involves a lot of your time a
lot of your attention and likely expenses on your part, I recommend a flat
no refund/no cancel policy. And when you think about it, in those situations with
those clients it’s not only the client committing to you
but you’re also committing to the client and having a no refund policy around
this agreement really honors that energy and intention for both of you because
now you both have to show up and participate fully. Now for any programs
are offering that has a no refund policy you want to make sure that it’s very
clear to the client upfront and include it in your signed agreement. I even like
to make sure that the client initials that specific part of the agreement so I
know they saw it. Now for self-paced programs or entry-level group programs,
if you stand behind your work and you know that your clients will have results
if they do the work then I do believe you need to stand behind it and have an
actual refund policy. Having a policy in place will give people a lot of comfort
at the purchase point and not because they are 100% committed but rather they
just want to make sure that you are now to be fair a lot of times when people
invest in self-paced programs or lower grupe they may not show up fully and
they take a passive approach or they change their mind or maybe they lose
enthusiasm halfway through because they got distracted or for whatever reason
they park it despite whatever good intentions they had in the beginning and
I honestly feel in those situations it’s no different than let’s say ordering a
pizza and then only eating half of it or maybe not eating it at all and having a
chicken salad I mean who’s going to call the pizza place back and say “hey I
changed my mind I didn’t eat the pizza can you give me
back my money?” Well no, right? That’s ridiculous. The pizza was delivered there
was nothing wrong with it what the client chose to do with it was their
problem and their decision. Your intellectual property is worth way more
than pizza, right? So the client, they absolutely have
the right to choose not to use it but in the end they still received all of it
and that’s why I recommend any refund policy for these kinds of programs 1-
limits the time they can ask for it and 2- requires them to submit their
completed coursework showing all of their effort and showing you that it
didn’t really work for them. We’re really strict about that in our business and I
suggest you are too because it’s not possible to guarantee results if the
clients aren’t willing to do the work so I think it’s only fair to ask them to
show up and fully participate . Now by asking clients to do this you’re going
to find that you’re going to have very few refund requests because first of all
this type of refund policy means that you’re only attracting 100% committed
clients who believe in personal responsibility and personal
accountability and even for the odd request you do get don’t just give the
money back how the conversation with the client because they’re struggling find
out where they’re stuck and you’re going to find out that they likely have good
intentions they just don’t know what to do next and I’m telling you by giving
them a hand where they’re stuck they’re going to move forward and again it’s
unlikely they follow through with their refund request because you show them you
have their back. Now there are a few other ways that you can structure your
refund policies that really show your clients you stand behind your work and
they’re also fair to you and I’ve shared the ones we use in our business in this
week’s handout and I hope you find really helpful in coming up with your
refund policies. The thing to remember is refund requests
are really not the end of the world- it happens to every entrepreneur, every
company at some point in their business and stepping up as a CEO of your
business by having a policy and having a plan in place long before you ever need
it you’re going to find that there’s really nothing to fear it’s actually not
a big deal. If you found today’s episode valuable, please share it with somebody
who you know needs it and subscribe to my youtube channel I’d love to have you
there and more importantly what I’d love you to do is leave me a comment below
this video and let me know what you found most helpful and what strategies
you’re going to implement in your business. And if you have specific
questions or you need more help then I would love to invite you to join me live
each week in “After the Episode” in my free Facebook community. All you have to
do is go over to LivingForwardCommunity.com, click the Join Now button,
and join us on the inside.