No-Refund Policy

The no-refund policy establishes that the setup fee is non-refundable once the Agreement Signature is complete. This is the commitment gate for the entire onboarding process. It protects the agency from absorbing the cost of real labor when a client changes their mind after work has already begun. It also signals to the client that this is a serious, professional engagement, not a trial run.

Why This Matters

The moment a client signs the agreement, your team begins working. Sub-accounts get provisioned. Automations get built. Phone numbers get purchased. Compliance registrations get submitted. Domain configurations happen. All of this costs real money and real labor hours. Without a no-refund policy, a client who signs on Monday and cancels on Thursday has consumed days of your team’s work at zero cost to them.

This is not theoretical. Agencies without a clear refund policy report significantly higher rates of early cancellation. Some prospects sign agreements, consume onboarding resources, and then request refunds, essentially getting free consulting and system setup. The no-refund policy eliminates this incentive entirely.

The policy also serves a psychological function. When the setup fee is non-refundable, the client has genuine skin in the game. They are more likely to engage with onboarding, provide requested materials on time, and invest effort in learning the system. Refundable fees create an escape hatch that undermines commitment. Non-refundable fees create investment that drives engagement.

How to Think About It

The no-refund policy is not punitive. It is the natural consequence of how professional services work. When you hire a contractor to remodel your kitchen, they do not refund the deposit after they have ordered materials and scheduled the crew. When you hire a lawyer and they begin working on your case, you do not get the retainer back if you change your mind. The same logic applies to agency services.

Frame the policy around the work, not the rule. During the Agreement Walkthrough, explain what happens after signing: “Once you sign, our team immediately begins building your system. We purchase phone numbers, configure your sub-account, submit compliance registrations, and start building your automations. Because this work begins right away, the setup fee is non-refundable.” When the client understands the cause-and-effect, the policy feels fair rather than arbitrary.

Never hide the policy or bury it in fine print. It should be a clearly stated, plainly written section of your agreement that gets explicit attention during the walkthrough. Clients who are surprised by a non-refundable fee after the fact will become adversarial. Clients who understood and agreed to it upfront will respect it.

The policy should also clarify what happens to the client’s assets and data if they cancel after the setup period. Can they export their contacts? Do they keep their website? What about the phone number? These questions are related to the refund policy and should be addressed in the same conversation.

Common Mistakes

Not communicating the policy before signing. If the client first learns about the no-refund policy when they request a refund, you have failed at the walkthrough. This policy must be explicitly discussed during the Agreement Walkthrough, not just included in the written agreement.

Being adversarial about the policy. “You signed it, too bad” is not how you handle a refund request. Start with empathy and understanding. Find out why they want to cancel. Sometimes the issue is fixable, and the client stays. If they still want to leave, explain the policy calmly, reference the walkthrough conversation, and offer a professional exit process.

Making exceptions that set precedents. If you refund one client because they complained loudly, word will get around. Other clients will expect the same treatment. Consistency is essential. The policy is the same for everyone, regardless of how they express their dissatisfaction.

Not documenting that the client acknowledged the policy. Whether it is a recorded walkthrough call, a checkbox on the agreement, or a confirmation email, you need evidence that the client understood and accepted the non-refundable nature of the setup fee. This protects you in disputes.

Applying the policy to recurring billing. The no-refund policy applies to the setup fee, not to the monthly recurring charges. If a client wants to cancel their monthly service after the appropriate notice period, they should be able to do so without penalty. Conflating the two creates confusion and resentment.

Tools Involved

The no-refund policy is a clause in your service agreement, delivered through your e-signature tool during the Agreement Sent step. It should be highlighted during the Agreement Walkthrough. If disputes arise, the signed agreement serves as the documentation. Your CRM in GHL should record that the walkthrough was completed and the policy was communicated, providing an additional layer of documentation.

Where This Fits

The no-refund policy activates at the moment of Agreement Signature. It depends on that signature being informed, which is why the Agreement Walkthrough must happen first. The policy does not block or enable any other onboarding steps. It is a protective element that runs alongside the entire onboarding process, ensuring that the commitment is binding from the moment work begins.

Common Questions

What if a client threatens a chargeback instead of requesting a refund? Chargebacks are a reality of accepting payments. Having a signed agreement that explicitly states the non-refundable nature of the setup fee is your primary defense. Payment processors will review the evidence: the signed agreement, the walkthrough documentation, and proof that services were delivered. In most cases, a well-documented no-refund policy results in the chargeback being decided in your favor.

Should I ever make an exception to the policy? Rarely, and only for genuinely exceptional circumstances, like a client experiencing a medical emergency or a natural disaster. If you do make an exception, frame it as a one-time gesture, not a policy change. Document it internally so it does not become a precedent. The bar for exceptions should be very high.

How do I handle a client who agreed to the policy but is now unhappy? Start by understanding the source of their dissatisfaction. Often, the desire for a refund is really a symptom of feeling unheard or underserved. Address the root issue. If the system is not performing as expected, fix it. If there was a miscommunication, clarify it. Many refund requests dissolve when the underlying problem is resolved. If the client still wants to leave after genuine effort to address their concerns, process the cancellation professionally according to the agreement terms.