What to Include in your Membership Terms of Use

If you offer any kind of membership, having membership terms and conditions isn't a nice to have; it's essential. 

Whether you have a coaching membership, social media content membership or offer a subscription membership for access to templates or other digital resource, it's important to set a solid legal foundation. 

What are Membership Terms?

Membership terms and conditions are legally binding contract between you, the membership provider, and your members or subscribers. It outlines the rules, expectations, and policies for your program. Membership terms set clear guidelines, and even boundaries if you provide access to you as part of the membership services. 

Membership terms also are intended to legally protect you. Without it, you’re leaving your business exposed.

What kind of clauses should be included in Membership Terms?

Some of the key terms that should be included in your membership terms and conditions are:

• Payment Terms: How and when members are billed, cancellation policies, and refund rules.

• Content Use: Protecting your intellectual property and clarifying how members can use your materials.

• Membership Rules: Expected behavior in group settings, termination rights, and access guidelines.

• Dispute Resolution: Outlining how disagreements will be handled, such as through arbitration or mediation.

By providing a clear, upfront agreement, you’re managing expectations and minimizing the risk of misunderstandings. 

Why Membership Terms Are  Important

For online business and lifestyle coaches, membership programs often involve delivering exclusive content, courses, or coaching sessions. The more valuable your offering, the more important it is to protect it. Here are a few reasons why:

1. Protect Your Intellectual Property

You’ve worked hard to create your membership content—your videos, PDFs, templates, and other resources. A well-drafted Membership Terms of Use agreement ensures that members understand your content is for their personal use only and cannot be shared, sold, or copied.

2. Prevent Chargebacks and Refund Disputes

If a member claims they didn’t understand your billing or cancellation policy, it can result in costly chargebacks. A clear Terms of Use agreement, coupled with a requirement to agree to the terms during sign-up, gives you strong evidence to support you to fight these claims. 

3. Set Boundaries for Behaviour

Membership programs often involve group interaction, such as live Q&A sessions or community forums. A Terms of Use agreement allows you to set behavior expectations and retain the right to remove disruptive members. 

4. Keep your Membership Legally Compliant

Your Terms of Use helps you comply with laws and regulations, such as the FTC’s rules on subscriptions and cancellations. Speaking of which, let’s dive into the FTC’s new Click to Cancel rule.

 

Memberships and the  FTC’s "Click to Cancel" Rule

In 2024, the Federal Trade Commission (FTC) introduced the final version of their “Click to Cancel” rule, aiming to make it easier for consumers to cancel subscriptions. This new regulation applies to online memberships, making it critical for membership providers who have members located in the US to understand and implement.

What Is the FTC "Click to Cancel Rule"?

Under this rule, businesses that offer subscription-based services must:

• Provide a Simple Cancellation Process: Members must be able to cancel their subscription as easily as they signed up for it. If someone joined your membership with a single click, they should be able to cancel with one as well.

• Avoid Unnecessary Barriers: Requiring members to call customer service or complete a complicated process to cancel is prohibited.

• Offer Clear Communication: Businesses must inform members of cancellation policies in plain language and avoid misleading or deceptive practices.

How to ensure your Membership Terms Comply With the FTC "Click to Cancel Rule"

To ensure compliance, membership providers should:

1. Streamline Your Cancellation Process: Make sure members can cancel directly through the same platform they used to sign up.

2. Update Your Terms of Use: Clearly outline your cancellation process and ensure it’s compliant with the new rule.

3. Test the User Experience: Regularly review your sign-up and cancellation processes to ensure they’re intuitive and straightforward.

4. Communicate Proactively: Send confirmation emails after cancellations to build trust and transparency with your members.

Failure to comply with the Click to Cancel rule can lead to hefty fines and damage your reputation. A well-drafted Membership Terms of Use can help you avoid these pitfalls. 

Other Benefits of Using a Membership Terms of Use Agreement

Beyond legal compliance, having clear and thorough membership let’s your potential members know you take your membership, and their decision to join, professionally and seriously. Here are some additional benefits:

1. Boost Member Confidence

When members see that you’ve clearly outlined your policies, they’re more likely to feel confident in their investment. Transparency builds trust and reduces buyer’s remorse.

2. Save Time and Stress

A membership contract reduces the back-and-forth over policies, saving you time and minimizing the stress of handling onboarding inquiries and disputes.

3. Strengthen Your Brand

Professionally drafted legal documents enhance your brand’s credibility. They show that you take your business seriously and value your members.

Membership Terms Template

Don’t let legal issues derail your membership program. Whether you’re offering online business coaching, a lifestyle membership, a social media group, or digital resources, a strong Membership Terms of Use is needed for a strong foundation.

The good news? You don’t have to start from scratch. Based on the huge number of requests (Memberships are definitely having a moment right now) I received from my community I created a customizable subscription Membership Terms Template so you can set clear terms and expectations in your membership easily and quickly 

With the right tools and legal protections in place, you can focus on serving your members and growing your membership, knowing it is legally protected. 

Final Thoughts on Membership Terms of Use

Running an online membership program is exciting and rewarding, but it also comes with unique challenges. A Membership Terms of Use agreement isn’t just about legal compliance; it’s about setting your business up for long-term success.