A couple of weeks ago I gave a 100% refund to a client.
We were 5 months into a 12-month period of working together.
I could have pro-rated the refund and reduced the amount by 40%.
I chose not to for three reasons:
1. Keep it simple
-Instead of going through the hassle of pro-rating. Explaining my reasoning. Exchanging emails. It was simpler to refund the entire amount.
2. Do what’s right
– I initiated the end of the agreement. Refunding all his money was the right thing to do.
3. Preserve the relationship
– I have a good relationship with the client. I’d like to work with his company again in the future. Giving 100% of the money back was a no-brainer.
100% refund doesn’t work for every industry. But you need some kind of policy in place for compensating clients if you are unable to fulfill your obligations.
What’s your refund policy?
