Should Coaches have a “No Refund Policy” for their clients?

Recently I got the question, “Is it usual practice for a Coach to have a “No Refund Policy” for their clients?
Typically, yes it is common practice that most coaches do initiate a no-refund policy in their business.

Why?

Because the coaches’ time has been spent scheduling calls (if they do not have an automated scheduler) and providing the coaching call services. (Unless the client is a no-show or changes their mind before services are ever rendered.)  And do we even have to talk about how much time that goes into marketing sometimes before a client ever becomes a client? Time is valuable and business owners/coaches should be paid because they are not volunteers.

Additionally, some coaches provide tangible materials or curricula to go along with the coaching they do. Therefore if a refund is issued they wouldn’t be paid for what had been purchased and the time that went into the creation of those tangible materials.

Some business owners (the ones who do not have healthy cash flow) are notorious for using cash as soon as it comes into their business to pay for expenses. This too is a reason why some coaches don’t offer refunds because they may not have it to refund.

However, this doesn’t mean that there isn’t some type of policy in place for canceling or rescheduling calls or putting the service package on hold if something comes up in the client’s life and they need to pause the service to a different season.

Furthermore, business owners should have some type of process to follow if they have an unsatisfied client and how they handle those situations. While this may not be a full or partial monetary refund, there should be some type of recourse and trying to reconcile so that the coach does not have to deal with and overcome negative PR – Public Relation instances and testimonials.

Should you have a “No Refund Policy” for your coaching business?

That is up to you and how you want to run your business.

There really isn’t a right or wrong here to what “should be” done.

Like homeschooling, it’s about what’s best for your company and the only person who can best determine that is YOU, the business owner/coach.

Some questions that can help you figure out what’s best for you:  

• Does it feel unethical to you to keep someone’s money if they request it back?
• What if they are dissatisfied and become angry?
• Are there certain instances where you feel you need to refund money- full or partial?
• Are there instances where you feel that no refund should be offered due to all the work you have put in?

Answering these questions becomes the foundation for creating the policy that is best for your business and is going to help you in creating healthy resolves for certain situations in your business.

And, you can update these policies at any time you feel it necessary in your business (and you should re-read & re-vise if necessary at least once a year). If you do revise your policies, be sure to notify your clients so they are aware of the updates.