How to avoid client fraud

I have a business idea where I'm gonna help my clients to find their business needs within a period of one month. It's kind of consulting service that I provide to them.

In order to start the service, I require them to deposit $X amount in advance. And, let's say within a period of 30 days, they don't find my service helpful, they can ask for a refund.

Suppose that when I was trying to show a business idea to one of the clients, the client doesn't give any indication whether she "likes" or
"dislikes" the idea. At the end of the month, she just says that she
prefers none of the ideas and she wants to get the money back. However, since there is no tangible product that I can keep, she can use the ideas privately.

How can I avoid this type of problem to occur?

I wouldn't offer a trial period to this. Since there is no tangible product there is no real way to restrict access. Besides, the trial is pointless if they can not use it in their business before making the decisions if they want you or not. The best you could really do is have in writing that if they want a refund they agree to not use any of your ideas, but I don't know how effective that would be.

Again, I wouldn't offer a full trial. Perhaps something like a one meeting trial would give them a taste of your services without putting you in a tough position.

I'd make it like most lawyers do in my country: first consultation free. Then a hourly rate.

Like Village Genius said, I would not offer a full trial. Maybe offer them to pay weekly instead of a full month in advance.

And just out of curiosity, are you planning on giving advice over the internet or in person?

Thanks for the answers to both of you.

@Eightloop: I'm planning to make it online, not in person. So, that's why I have that consideration

z_kagenotora

You've outlined the problem nicely: The model you propose puts you at risk of never being compensated adequately Or at all, for that matter.

While you may have a way to identify clients who would never, ever behave so unethically, why start a new business with this one extra worry? There will be plenty of other things to keep you awake nights, I promise.

And, while I'm not a lawyer, I can see that this model might leave you open to further lawsuits and a situation where you are never rid of your worst clients. Say, for example, the client decides you didn't live up to your promises, you return the fee and the client then decides to sue you for his/her time you took up being "incompetent." Not a pretty picture, but it happens.

I understand the desire to give this kind of unconditional guarantee as a way to brand yourself and to demonstrate your confidence in your abilities. But save this strategy for the Year 5 Doldrums, after you've established a grateful and loyal clientele.

It's better to put everything in writing. Better to consult a lawyer.