A Reasonable Refund Policy

A sensible refund policy benefits sellers as much as it benefits buyers. A new view of refunds in the coaching industry would solve some of our biggest image problems, protect the brands of coaches doing good work, and allow more people to engage more enthusiastically with the training and support they need.

Timestamps

[00:00:00] Introduction and thesis

A no-refund policy is widely accepted in high-ticket coaching, often framed as a benefit to both seller and buyerToday's argument: a sensible refund policy benefits sellers as much as buyersBackground: inside dozens of coaching businesses since 2014, including several that exceeded a million dollars in annual revenue—this is an insider perspective, not opinion from the outside[00:03:16] The asymmetry of information problem

The seller knows what the program is actually like; the buyer has only the sales page, the testimonials, and the priceSellers often filter applicants by income or client count—well-intentioned, but imperfect; how much someone has made is a good but incomplete signal of fitEven with filters in place, some people who cross the threshold are not a great fit—the seller knows this; a refund policy is the honest acknowledgment of that factA no-refund policy leaves no room for either party to have made a mistake: "A refund policy becomes the insurance against the imperfection of the sales experience and the imperfection of the fit between buyer and seller"[00:07:03] Six psychological principles stacking the deck against the buyer

[00:07:10] 1. Parasocial relationship — Buyers often spend months or years in a seller's content orbit, forming a one-sided relationship in which the seller becomes associated with their own aspirations; the shorthand is "I want to be her"—and that lean makes it harder to evaluate a program on its merits; a seller who can acknowledge the parasocial dynamic and formalize that acknowledgment through a reasonable refund policy is headed in the direction of ethics[00:10:19] 2. FOMO and 3. Social proof — Fear of missing out looks like this: a peer joins the mastermind, momentum builds, and the cost of saying no starts to feel higher than the cost of saying yes; social proof compounds it—testimonials, photography of beautifully designed conference rooms, smiling participants—none of it is wrong, but it can blur the decision and take the buyer's eye off whether the program is actually a good fit for them right now[00:12:57] 4. Price as a value signal — In the absence of other