I had a discussion recently with a group of seasoned entrepreneurs in the online business space about refunds — should you offer them? What if a client wants one? How do you tell somebody you aren’t going to give them their money back?
I was surprised by how many of those entrepreneurs had solid policies and written agreements in place, and yet still felt bad about enforcing them. They felt like they were “being mean” if they enforced their agreements. They felt like they had no choice but to give refunds even when requested way outside of their agreed to refund policy. They were giving refunds even in situations where it seriously hurt their business and created serious consequences for them personally.
And if you’re running a six or seven-figure business, I’m guessing you’ve seen one of these situations firsthand:
A client signs up for a program and then asks to pay less because “they can’t afford it”
A client wants their money back…two days after the refund period has ended
A client is having a personal issue and therefore no longer can pay / wants their money back, wants to be let out of an agreement, etc.
Any of these sound familiar? Alright, let’s talk about how to handle it:
This is often about women not valuing other women.
In my experience, women are much more suspicious of other women’s value, more willing to ask for their money back from other women, and more likely to try to make it about being “nice” or “friends” instead of treating it like business.
And of course that's the case, look at the patriarchal society we've all been raised in that values men's work over women's.
Let’s talk about my business for example. I’m running a business that teaches how to run a business. So when a client asks me for their money back and I say yes because I’m uncomfortable, I feel awkward or I’m afraid of being seen as “mean,” what kind of example am I showing to that client? Would I recommend they turn around and give their clients refunds so they don’t “look mean”?? HELLLLLLLLLLL NO.
Niceness is not a business model.
So I lead by example: I work with clear written agreements and I follow them to the letter…and that’s exactly what I encourage my clients to do.
Think about that the next time you give somebody their money back or adjust their payment because you want to be “nice.” Think about the example you’re setting for that woman. And think about the example you're setting for yourself. Value your own work and worth.
Follow the agreement (yours and other people’s).
For one thing, it makes it SO. DAMN. SIMPLE.
It takes the sting out of it. If the agreement says you have 30 days to get your money back, you won’t get your money back on day 31. If the agreement says you need to pay $1500, you need to pay…you guessed it…$1500. Even if your cat went missing. Even if you changed your mind. Even if <insert any excuse here>.
Recently, I had to cancel a business retreat because of my pregnancy. I had paid a fair amount of money for this trip and I was so disappointed that I couldn't go. I reached out to the host and let her know that I wouldn’t be able to attend and asked what the cancellation policy was. Then I followed it to the letter. I didn’t try to get my money back. I didn’t give her a sob story about my health. I just asked what the policy was and respected it because I had agreed to it. And because I valued the work that the woman who had been busy creating an amazing experience for me had done and I valued my relationship with her.
So, if you really want to be nice, follow agreements. Follow the agreements that you make with your clients (ie, deliver every bit of the paid for products and services). Follow the agreements that you make when you enter into partnerships. Follow the agreements that you make with your staff. When somebody has a question about payment or refunds or issues, point them towards the agreement.
Here’s the thing—being nice doesn’t make you a nice person.
A nice person values other people…ABOVE MONEY.
And because they value other people, a nice person values the agreements made with said people and follows them to the letter…ABOVE MONEY.
A nice person values their own integrity…ABOVE MONEY.
So do you want to act nice to avoid discomfort, or do you want to be a nice person?
Think about it.
xo,
PS: Whenever you’re ready, here are one way my team and I can help you grow your business this year:
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Rachel Rodgers is a woman of color, a mother of four and a seven-figure business owner – in that order. Rachel started her career working on The Hill with nonprofits, federal judges, and Hillary Clinton. When she realized that changing the world is easier when you have some cash in your bank account, she decided to build a million dollar business and then teach other women how to do the same.
Rachel is the creator of the Hello Seven Podcast and the founder of We Should All Be Millionaires: The Club. Her forthcoming book, WE SHOULD ALL BE MILLIONAIRES from Harper’s Leadership is due to publish in Spring 2021. Every week, her no-bullshit business and life advice gets delivered to over 30,000 fans and her visionary guidance for female entrepreneurs has been featured in Time, Forbes, Entrepreneur, Fast Company and the Washington Post.
Rachel Rodgers is the founder of Hello Seven, a multi-million dollar company that teaches women how to earn more money and build wealth.
Rodgers has been featured in Time, Forbes, Entrepreneur, Fast Company, the Washington Post, on NBC News, and Cosmopolitan.
Rodgers’ mission is to teach women—especially women of color—how to end the cycle of overworking, underearning, and financial stress, once and for all.
Through her podcast and blog, Rodgers’ reaches over 50,000 women every week—sharing guidance on how to take charge of your financial situation, increase your income, work smarter, and make decisions like a millionaire (even if you aren’t one, yet).
As a business coach, attorney, CEO, Black woman, working mother, and self-made millionaire, Rodgers brings a powerful combination of professional and personal insight. She’s known for her blunt, sensible advice and for calling out the elephant in the room—whether it’s racism, misogyny, or centuries of unfair legal practices that have stripped financial power away from women. Rodgers teaches her clients how to succeed financially in spite of the very real obstacles along the path.
Rachel started her career working on The Hill with nonprofits, federal judges, and iconic leaders including Hillary Clinton. When she realized that changing the world is a lot easier when you have some cash in your bank account, she decided to become wealthy and teach other women how to do the same.
Rachel is the host of The Hello Seven Podcast and founder of We Should All Be Millionaires: The Club, an online network for professional women. Her forthcoming book, We Should All Be Millionaires from HarperCollins Leadership will be released in Spring 2021.
She resides in North Carolina with her husband and four kids on a 53-acre ranch, leading a life that is beyond her ancestors’ wildest dreams.