What is Terms of Service?

Terms of Service (ToS), also called Terms and Conditions or Terms of Use, is a legal agreement between you and your customers that governs the use of your products, services, and website. For creators selling digital products, courses, or memberships, clear terms protect both you and your customers by setting expectations and defining rights.

Why Terms of Service Matter

Legal Protection

• Limits your liability for product outcomes
• Establishes dispute resolution procedures
• Protects your intellectual property
• Clarifies your obligations and limitations

Clear Expectations

• Defines what customers are purchasing
• Explains how your products can be used
• Sets rules for community participation
• Outlines your refund policy

Professionalism

• Signals a legitimate, trustworthy business
• Required by most payment processors
• Expected by corporate or enterprise buyers
• Builds customer confidence

Key Elements of Terms of Service

Account Terms

• Who can create an account (age requirements)
• Account security responsibilities
• Consequences of sharing login credentials
• Account termination conditions

Product Access & Delivery

• What's included in the purchase
• How and when access is granted
• Duration of access (lifetime vs. limited)
• Technical requirements to use the product

Intellectual Property

• Your ownership of content and materials
• Customer's license to use the content
• Restrictions on sharing, copying, or reselling
• Consequences of copyright violation

Acceptable Use

• How customers may use your products
• Prohibited behaviors and activities
• Community guidelines (if applicable)
• Consequences of policy violations

Payment Terms

• Pricing and currency
• Subscription billing details
• Payment methods accepted
• What happens if payment fails

Refunds & Cancellation

• Your refund policy
• How to request a refund
• Subscription cancellation process
• What happens to access after cancellation

Liability Limitations

• Disclaimer of results or outcomes
• "As-is" product delivery
• Maximum liability limits
• Indemnification clauses

Dispute Resolution

• How disputes will be handled
• Governing law and jurisdiction
• Arbitration vs. court proceedings
• Time limits for raising issues

Changes to Terms

• Your right to modify terms
• How customers will be notified
• Continued use as acceptance

Creating Your Terms of Service

DIY Options

• Use templates from reputable legal sites
• Study terms from similar creator businesses
• Customize templates to your specific situation
• Good for getting started, but has limitations

Professional Help

• Hire a lawyer familiar with digital products
• Worth the investment for established businesses
• Essential for high-ticket offers
• Provides tailored protection

Hybrid Approach

• Start with quality templates
• Get legal review before launch
• Update as your business grows
• Annual review recommended

Best Practices

Accessibility

• Link terms in website footer
• Include in checkout process
• Require acceptance before purchase
• Make terms easy to find

Clarity

• Write in plain language when possible
• Organize with clear headings
• Highlight key points (like refund policy)
• Avoid unnecessary legal jargon

Updates

• Review terms regularly
• Update when adding new products or features
• Notify existing customers of significant changes
• Keep records of previous versions

Enforcement

• Apply terms consistently
• Document violations and responses
• Be fair but firm in enforcement
• Have a process for handling issues

Terms of Service vs. Other Documents

Document	Purpose
Terms of Service	Rules for using your products/services
Privacy Policy	How you handle personal data (GDPR)
Refund Policy	Specific return/refund conditions
Community Guidelines	Rules for community behavior
License Agreement	Specific software/content usage rights

Common Mistakes to Avoid

• Copying terms exactly from another business
• Using overly aggressive or one-sided language
• Forgetting to update terms when products change
• Making terms impossible to find
• Not requiring acceptance at checkout
• Including unenforceable provisions

Where to Display Terms

• Website footer (link to full terms)
• Checkout page (with acceptance checkbox)
• Account creation process
• Student portal or member area
• Purchase confirmation emails