Refunds can be an uncomfortable topic among freelancers, however it is extremely important to know how to handle a refund situation.
In this blog, we will discuss how to manage refunds, how FreeUp can help, and how to avoid them all together.
How do refund requests work on FreeUp?
Our billing period is Wednesday through Tuesday. Clients are charged every Thursday and have one week to file a dispute before the freelancers are paid the following Thursday.
The two main reasons clients ask for a refund are:
- Over billing
- Quality of work
Over billing mostly occurs when:
- Error in billing - occurs when freelancers forget to stop the time clock or bill the wrong client
- Not agreeing upon an hourly rate before work begins or not asking for approval to start work
As soon as a refund request is received by our team, the support team reaches out to the freelancer for documentation and the freelancer’s side of the story.
How Does FreeUp Help?
The FreeUp Support team members are experts in mediation!
How do we provide mediation for both the client and the freelancer? When there is a refund request:
- We ask both parties to provide documentation (written agreements, contracts, proof of work, etc.)
- We will review all documentation to see if there are any discrepancies. Our team will then calculate the refund amount
- Sometimes FreeUp will help cover some of the refund amount in order for you to keep the client
- If you are not satisfied with the result of the review, you may request additional evaluation by the Director of Freelance Success and the Director of Client Experience
Our goal is to make our clients and freelancers as happy as possible. We try our best to come up with resolutions that make both parties happy.
How Can You Avoid Refunds?
Not all issues are unavoidable however there are a few things you can do to avoid most issues!
A combination of proper communication, an efficient onboarding process, and setting the right expectations, you should never experience an out of the blue refund.
We mentioned previously, the most common reasons clients request a refund is because the hourly rate was not agreed upon before work began.
Your hourly rate is something that must be discussed before you begin clocking your time for the client’s project. The following should be outlined beforehand:
- Decide on the scope, hours, and hourly rate and get in writing even if it is in an email. You will need it later if the client requests a refund
- Determine the expected hours and productivity
The second most common reason why clients request a refund is quality issues.
How can you make sure your skills are up to par?
- FreeUp is not the place to “try” or “practice” a new skill. Therefore, you should not be applying for jobs that you do not have the right skills for. You should only be advertising skills you are experienced with.
- Communication, communication, communication. Communication with your clients is key to a successful freelancer career. Provide your clients with constant updates and ask for their feedback.
- If the client asks you to take on more responsibilities than originally agreed upon, please reach out to the support team to help!
Send a Scope of Work Document
Before you start working for the client, we suggest sending a Scope of Work document first.
Do Your Best
Refund requests can sometimes be unavoidable, however most of these situations can be avoided by the steps we’ve outlined above.