I always see IT founders ignore this

Last week was quite eventful. I finally tackled a mountain of backend work that I had been putting off for weeks.

It felt great - like clearing the mental clutter that had been hanging over me.

At the same time, my LinkedIn activity has been thriving. The engagement on my posts has been incredible, reminding me that consistent effort truly pays off.

But, it's also made me reflect on how much work often goes unnoticed behind the scenes.

Everyone I've spoken to recently seems to be in the same situation - struggling, experimenting, and figuring things out as they go.

It's easy to feel like you're the only one juggling so much, but the reality is that we’re all doing our best to make ends meet.

This brings me to today’s topic: Refund Policies.

The Problem with Vague Refund Policies

Refund policies are often one of the most overlooked aspects of IT contracts. But why is that?

Because they often feel like an afterthought. Most founders believe they won't need a refund policy - until the moment they do.

Or they do get it, but they have the most generic terms out there. Something that doesn't fit their business.

Now when the moment arrives to use that policy, it can quickly turn into a nightmare.

What normally ends up happening is - you’ve delivered a project, but the client isn't satisfied for reasons that aren't entirely your fault.

Suddenly, they demand a refund. You check the contract, and what do you find?

The refund terms are vague - barely even mentioned. Now you're left scrambling to decide how to respond.

Without clear terms in place, you face two difficult options:

1. You agree to the refund, which means losing both time and money.

2. You refuse the request, and the client may take to social media or leave a negative review.

In either case, it's a lose-lose situation.

Why This Happens and What You Can Do Better

The reason is quite simple actually. Most refund policies in IT projects rely on loose ideas:

• “We’ll figure it out later.”

• “We trust our clients won’t ask for one.”

But that’s not a strategy. It will never be a strategy.

When tensions are high, ambiguity breeds frustration. And frustration turns into bad reviews, strained relationships, and potential disputes.

But if you want to avoid messy refund disputes, you need clarity. Here’s how I suggest you make your refund terms airtight:

1) Define Refund Scenarios

Spell out the exact situations where refunds apply.

• Did you miss a milestone?

• Was the deliverable significantly different from what was agreed upon?

Be as specific as possible. This removes the guesswork for both you and the client.

2) Offer Alternatives

Refunds aren’t the only solution.

• Offer service credits instead of cash refunds.

• Adjust the project scope to fix the issue.

Clients want to feel valued, and most will appreciate alternatives that solve their problems without escalating things.

3) Set Clear Conditions

Make sure both sides understand the refund process before signing the contract.

For example:

• Refunds are only valid within 30 days of delivery.

• Refunds exclude work already completed.

Put it in writing, and review it with your client to avoid surprises later.

Why This Matters

A good refund policy ultimately builds trust with your clients. It shows them you’re fair and honest, and that you care about doing the right thing.

And when things go sideways - and let’s face it, they sometimes will - you’ll have a straightforward way to fix the problem without ruining the relationship.

Final Thought

Refund policies aren’t exciting to talk about. But they’re important. Always think of them like a safety net:

You hope you’ll never need it, but when you do, you’ll be glad it’s there.

And trust me, a clear, fair refund policy will save you time, money, and headaches in the long run.

It’s one more way to build a business that’s not just good at what it does - but good at how it treats people.

And if you need my help with it, just reply "REFUND" and get's get you 1 for your business.