Why a Clickwrap Agreement is Necessary for Selling Digital Products
Selling digital products, like online courses, is an exciting venture—until it’s not. Imagine waking up one morning to find your carefully crafted course content plastered all over a free download site and a customer has filed a chargeback after binging through every module. Frustrating? Absolutely. Preventable? Thankfully, yes.
Enter the clickwrap agreement—a simple but effective tool that can safeguard your business from legal headaches, protect your content, and keep your business running smoothly. If you’re an online course creator, coach or leader of a membership community, this blog will explain why a clickwrap agreement is essential for your success and how it can protect you while enhancing your credibility as a professional.
What is a Clickwrap Agreement?
You’ve encountered clickwrap agreements countless times. Every time you’ve clicked “I Agree” before signing up for a new app or completing an online purchase, you’ve entered into a clickwrap agreement. It’s a simple concept, users actively agree to your terms and conditions by clicking a button or checking a box.
What makes clickwrap agreements effective is their clear and conspicuous presentation. Unlike browsewrap agreements, which rely on users passively accepting terms just by using a website (and are often unenforceable), clickwrap agreements ensure users actively consent to your policies.
For example, when someone purchases your course, a clickwrap agreement can require them to acknowledge terms like:
- “This course is for personal use only, not for redistribution.”
- “No refunds are provided after course access is granted.”
This explicit acknowledgment gives you legal protection while ensuring your customers understand your rules upfront.
The Benefits of Using Clickwrap Agreements for Digital Product Sellers
- They Protect Your Content
As a course creator, your intellectual property is the lifeblood of your business. A clickwrap agreement lets you explicitly state your ownership rights and prohibit unauthorized sharing or reproduction of your materials.
For instance, you can include terms that prevent customers from uploading your videos to public platforms or sharing logins with others. Without these clear boundaries, your hard work could be freely distributed, diluting its value and impacting your income.
- They Minimize Chargebacks and Refund Disputes
We’ve all heard horror stories of customers demanding refunds after consuming an entire digital product. A clickwrap agreement allows you to define and enforce your refund policies.
For example: “Refunds are not granted after you’ve consumed more than 50% of the course materials.” By making this clear at the time of purchase, you have a stronger defense if a dispute arises.
- They Set Expectations with Buyers
Confusion leads to conflict. A clickwrap agreement clarifies what customers are buying—access to your content, not ownership of it. It can also outline acceptable uses, such as:
- No sharing account credentials.
- No reproducing or selling course content.
When expectations are clearly communicated upfront, misunderstandings are minimized.
- They Demonstrate Professionalism
Let’s be real, customers take you more seriously when you operate like a legitimate business. Legal agreements aren’t just about protection; they’re about presentation. A well-crafted clickwrap agreement shows your audience you’re a professional who values your work—and their outcomes.
Risks of Selling Digital Products Without a Clickwrap Agreement
- Copyright Infringement Risks
Without clear terms, some customers might assume they can do whatever they want with your content. They might resell your course materials or use them in ways you never intended. This not only harms your business but can also damage your brand’s reputation.
- Losing Chargeback Disputes
Chargebacks are inevitable for any business. When selling digital products or courses, or even coaching services, chargebacks are even more likely. Although you can't prevent someone from issuing a chargeback with their bank or credit provider, you can equip yourself for handling chargeback disputes successfully. A clickwrap agreement is what the bank or credit card company is expecting to see from you, to prove your policies and that the customer actually bought from you. Having unclear terms, or lack the process of a clickwrap purchase (E.g. - you are operating under a browsewrap scenario) or no terms at all is exactly why people lose chargebacks!
- Customer Service Issues
As mentioned above, a clickwrap agreement helps set expectations. Specifically, it sets expectations between your business and your users/customers. If questions arise, you can always direct users to your terms to help answer their questions. Or if a dispute arises or an issue, you can look to the processes set out in the terms to once again guide both parties. Or the inquisitive user might read through your terms before purchase, to understand what they're really buying access to or to understand the boundaries set by your terms. This type of transparency is always great to better manage your client/customer relations.
What Makes a Clickwrap Agreement Effective and Enforceable?
The term "Clickwrap agreement" refers to both the substantive and procedural aspects to an online terms and conditions. To be legally binding, the content of the terms themselves need to be enforceable and valid—this is the substantive aspect. And once again there needs to be a process to collect the user's assent to be bound by the terms— this is the procedural aspect. Having terms drafted by lawyers is how to check the box on the substantive aspect. Having the clickbox, and easily accessible terms through a hyperlink, is how you satisfy the procedural aspect.
This combination is how your clickwrap agreement will hold legal water and simultaneously meet certain criteria, as outlined by the Electronic Signatures in Global and National Commerce Act (E-Sign Act) which are as follows:
- Clear and Conspicuous
Your terms should be easy to read, free of legal jargon, and prominently displayed. No one wants to squint at tiny print or scroll through a wall of text.
- Unambiguous Consent
The act of clicking “I Agree” must be intentional. Avoid pre-checked boxes or vague wording that could undermine enforceability.
- Visible Terms
Ensure customers can easily access your terms before agreeing. A link to your terms and conditions should be front and center.
- Retained Records
Keep a record of user consent. If a dispute arises, you’ll need proof that the customer agreed to your terms.
By adhering to these guidelines, you will have a better chance of your clickwrap agreement holding up in a chargeback dispute, or in court if needed.
Why You Need a Lawyer-Crafted Agreement Template
Sure, you could try drafting a clickwrap agreement yourself, but let’s be honest, do you really want to risk your business on a DIY contract?
Risks of DIY or Free Templates
- Bad User Experience: Poorly designed agreements can confuse customers, leading to lost sales.
- Unenforceable Terms: As mentioned above, your terms need to be enforceable and valid to satisfy the substantive concerns. Free templates might not meet the specific needs of your business or comply with your local regulations regarding binding contracts.
Advantages of Lawyer-Crafted Templates
A lawyer-crafted template is tailored to the unique challenges of selling digital products. It addresses common pain points, ensures enforceability, and gives you peace of mind.
Our templates are designed specifically for creative small business owners like you. They’re cost-effective, easy to customize, and backed by years of legal expertise.
Clickwrap agreements might not be the most exciting part of your business, but they’re undeniably one of the most important. They protect your intellectual property, reduce disputes, and signal to your customers that you take your business seriously.
With a properly drafted clickwrap agreement, you can focus on what you do best—creating amazing digital products—without worrying about legal pitfalls.
Don’t wait until you face a dispute to act. Protect your business and your peace of mind today.