Is there ever a time when a coach gives a client a refund?
YES, and that is guided by your integrity.
Strengthen the intuitive feelings that tell you when something is amiss in your coaching relationships such as
- Weak or breached boundaries
- Repetitive communication challenges
These things can be repaired if both you and your client are willing, which are great learning opportunities. Or, it might become clear there’s not a good fit between you and your client.
It’s always YOUR CHOICE if and how you give a refund. We’ll dig into that and more in this episode.
If you haven’t heard it already, I recommend that you listen to Episode 376 called When Coaching Clients Ask for Refunds it’s a Symptom. Find that at ProsperousCoach.com/376.
That episode covers how to proactively PREVENT the likelihood of clients asking for a refund by setting your business up in a professional way.
How My Integrity Was Tested by a Coaching Client
In 2006, my first year of helping coaches build their coaching businesses, one of my clients asked for a full refund after 6 months of private work with me.
I was floored and nothing had clued me in this was coming!
After listening closely to their well rehearsed and general complaints, I explained that I could not, in good conscience, give a full refund because coaching is a co-creative process and I had already spent nearly 50 hours in good faith in their service.
The person threatened to complain to Visa, Better Business Bureau and PayPal. So begrudgingly and only to remove those threats, I gave them a full refund.
I found out that week that they had asked for a full refund from their coaching training school as well, which lead me to conclude this was about money not just cause. I felt great compassion that this person’s financial straits lead them to threaten providers.
Did I do the right thing giving that refund?
I had not promised results and I had made it clear the client was responsible for their results. I felt that I had acted from integrity during our professional relationship.
It was the threat that moved me to give the refund.
I made a firm decision then that I would never again give a full refund for time that I already spent privately with a client unless my integrity is crystal clear that I should.
Episode 376, that I mentioned earlier, will help you set your business up and act in ways that discourage requests for refunds.
Also, for help building up and checking your integrity, check out Episode 363 called Test Your Coaching Business Integrity in 5 Powerful Questions.
Circumstances Where Partial Refunds with Coaching Clients are a Good Idea
Let’s shift to talking about giving a partial or pro-rated refund for time not yet spent with clients. Let’s break that down:
1. Partial or prorated refund
2. For time not yet spent
Life happens and sometimes a client who has pre-paid for your Signature Program or a set of sessions isn’t able to complete the program due to unplanned circumstances.
The main way that I work with clients is in my 5-month VIP Coaching Business Breakthrough program where I act as thinking partner, guide and mentor for coaches to create all the foundational pieces of their business.
Five months is a long period of time — the right amount of time for my program — and during that time things can happen that no one can control.
For example:
- The client suddenly has a sudden long-term illness or flare up that makes it impractical to continue
- A family member of the client becomes ill and the person needs to care for them full time
- The client experiences an unplanned pregnancy and that changes their focus
- And, either the coach or client has an emergency and needs to clear the decks
In 20 years offering my VIP program, all these conditions have popped up.
I believe in the kindness of removing stress from a person’s life when they are already stressed, so I’ve offered a partial refund in those circumstances.
Motivated by kindness and checked by my integrity, I know all those are good reasons to give a pro-rated refund for the time left in a program.
YOU don’t have to give a refund unless your integrity tells you it’s best. And you have to go with your integrity otherwise there are repercussions.
I have known some professionals that set a policy of NO REFUNDS no matter what. If YOU want to set a policy like that, communicate it both verbally and in writing. Ask your client to sign and date a document that they have read and understand your policy BEFORE you start working with them.
Money Back Guarantees for Digital Products and Programs
If you are selling digital products — online courses that don’t have a live training or service component, it’s customary to offer conditional guarantees.
I had money-back guarantees on two online training programs I used to sell. It said:
MONEY BACK GUARANTEE:
If you are not satisfied with the quality of this program
within the first 7 days of your purchase
you may request in writing and receive a full refund, no questions asked.
After 7 days this product cannot be refunded.
Of course, I had long sales pages with clear descriptions of what they would receive, when and how as well as testimonials. The program dripped out weekly so I wasn’t giving the full program away before the refund policy was out of time. I never had anyone ask for a refund beyond 7 days.
Unfortunately, the investment for programs like these does not often inspire commitment to consume and implement the material. It’s one of the reasons I stopped selling digital programs — I want my clients to succeed and I know that their commitment to their success is critical for that to happen.
By the way, if you give too many refunds for digital programs you can be penalized by merchant services such as Stripe , PayPal and others so it’s important that your policy is clear and not in small type.
The bottom line? Your integrity is your best guide for whether, when and how you give refunds for your coaching and programs.