How to Avoid Refund Requests, Chargebacks, and Client Blowups
When you’re scaling your online business past $500K into the seven-figure range, one thing is certain: client problems scale with you. If you're a coach, online educator, or membership owner, preparing for these challenges is not optional—it's essential for sustainable growth.
In a recent Answers with Autumn session, AWB Firm founder Autumn Witt Boyd and senior attorney Bethany Gaal shared their experience helping high-level online businesses manage client disputes, protect their revenue, and maintain their reputations.
Here's a recap of their key strategies to avoid expensive client problems and build a stronger business.
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Why Legal Protections Matter More as You Grow
When you start reaching a broader audience through ads, affiliate programs, and larger launches, client trust naturally decreases. Unlike your original "warm audience," new customers don't know you personally, making them more cautious—and more likely to ask for refunds, miss payments, or file chargebacks if expectations are not met.
Without the right systems in place, a single unhappy client can snowball into lost revenue, bad reviews, and even legal complaints.
Step 1: Build Strong Foundations with Clear Contracts
Clear contracts are your first line of defense. If your sales page promises one thing but your contract says another—or worse, says nothing—you’re vulnerable.
Key elements every contract should include:
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Transparent service descriptions: Spell out what clients get.
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Clear refund policies: A no-refund policy is enforceable, but spell it out clearly.
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Detailed installment terms: Make it obvious that clients are committing to the full payment plan, not a month-to-month subscription.
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Termination rights: Protect your business if you need to fire a problematic client.
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Survival clauses: Ensure confidentiality and intellectual property protections continue even if a client leaves.
Bonus tip: Always save a copy of your sales page for each launch so you can prove exactly what was promised.
Step 2: Align Your Sales and Delivery
Most client complaints stem from misaligned expectations during the sales process.
Ways to prevent this:
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Stay consistent across sales channels: Website, webinars, DMs, and sales calls must promise the same things.
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Avoid overpromising results: Particularly income or weight loss claims, which are heavily regulated.
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Disclose guest coaches: If you’re not delivering services personally, say so clearly upfront.
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Track deliverables: Use project management tools or Airtable templates to track whether clients are engaging and receiving the promised value.
When clients feel they got exactly what they expected—or more—they’re much less likely to become a refund or chargeback risk.
Step 3: Handle Disputes Strategically
Even with the best contracts and customer service, disputes happen. Handling them well is what sets thriving businesses apart.
Tips for handling unhappy clients:
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Review the contract first: Know what you’re obligated to do—and what you’re not.
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Respond with empathy: Kindness and transparency often de-escalate conflicts.
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Create a dispute SOP: Train your team on how to handle refund requests and complaints consistently.
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Involve a lawyer when needed: If a client threatens legal action, files a complaint with the FTC, or hires an attorney, bring in legal support immediately.
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Gather documentation early: Keep emails, payment records, and login data handy in case you need to defend your business.
Sometimes offering a partial refund or alternative support option can resolve an issue before it escalates. Other times, it’s about holding your boundaries and enforcing your contract.
Protect Your Business as You Scale
Scaling brings incredible opportunities—and new risks. Preparing now with clear contracts, strong systems, and a strategic plan for handling disputes can save you hundreds of hours, thousands of dollars, and your hard-earned reputation.
At AWB Firm, we help online entrepreneurs scale with confidence by building the legal foundations their businesses need. If you’re ready to stop firefighting client problems and start proactively protecting your brand, schedule a call with our team today.
We’re currently accepting applications for our Legal Roadmap Strategy™. Click here to learn more and apply.
