YAY, you stumbled into the world of online business! 💻

Whether you finally decided to quit your 9-5 and make your side gig your main gig, or you finally started the side gig you’ve been dreaming of, or even if you’re just out here living out one of your hobbies, it’s a pretty cool place to be.

I truly believe it’s never been easier to start a business than in this digital era, which is a GREAT thing!

But I’d be remiss not to tell you the most common mistakes that I see online business owners make. And I want to preface this by saying… if you’re currently making these mistakes, it’s not your fault. 

No one is out there making sure that new business owners know all of the correct steps to take when they jump into the world of entrepreneurship. 

It’s sort of like a rite of passage for business owners to experience trial and error and figure it out along the way. 

And while I definitely had to experience that for myself, I believe that new business owners CAN start on steady ground and avoid some of the overwhelm and heartache that can come with starting a business from scratch. 

The good news? YOU can be one of them since you were lucky enough to find my account and stumble upon this blog post. 

My goal with The Boutique Lawyer is to make the sometimes daunting legal world feel more approachable by providing growth-minded entrepreneurs (like you!) with everything you need to protect your brand, your profits and your life’s work. 

It’s time to stop avoiding the scary business things that you don’t understand and give yourself a legal leg up so you can spend MORE time doing the thing you set out to do in the first place. 

So, if you’re ready to make that happen, take note of the 5 most common mistakes I see online business owners make and implement the quick actions provided to avoid them!

5 Common Mistakes That Online Business Owners Make (And How To Avoid Them)

1. Not Creating CLEAR Terms and Conditions

Whether you’re selling digital products or physical products, having crystal clear terms and conditions that governs every transaction is a MUST!

Also referred to as Terms of Purchase, the best way to think about your Terms and Conditions is like a rulebook for a game.

This legal agreement is THE one that sets the ground rules and expectations for how your customers can use your products while simultaneously providing a safety net for you as the business owner. 

Just like in a football game, when there’s a dispute of any kind, the referees refer to the rulebook for their final call. The same goes for your business – if or when you run into a problem of any kind, you can turn to your business owner “rulebook” to determine your plan of action for resolution. 

Essentially, a Terms of Purchase Agreement outlines the specific terms of a transaction for either physical or digital products and covers policies that are a part of the purchase process, such as refunds, chargebacks or cancellations.

➡️ HOW TO AVOID: before you sell ANYTHING online, create a clear Terms and Conditions agreement that outlines key areas such as payment policies, returns and refunds, intellectual property rights, and limitations of liability.

Then, make sure the agreement is set up as a clickwrap on your checkout page!

A clickwrap is when someone has to actively check a box that says “I agree to the terms…” and this action is typically taken at checkout or when something is added to cart.

When it comes to selling products and services, I always advise business owners to display your Terms of Purchase and Terms and Conditions as a clickwrap (NOT a browsewrap) so that the agreements are more enforceable if any legal action is ever needed. 

If you’re not sure what to include in your Terms and Conditions, click here for the 5 hardest working clauses.

But also in case  you’re not a fan of the DIY life, I have an easy plug and play template you can snag here if you’re selling DIGITAL products or here if you’re selling PHYSICAL products.

2. Failing to Protect Intellectual Property

When you’re first starting a business, everything feels super exciting! You’re often doing all kinds of fun stuff like creating a logo, designing your brand, building your website, creating your offers, etc.

Amidst all of this FUN, it’s common to forget the not-so-fun things… like the legal things. 

And trust me, I totally get it! Even as a lawyer myself, it can still feel SO tempting to avoid all the legal stuff and put all of my focus into other parts of the business instead.

But the truth of the matter is that you can’t really enjoy any of the fun stuff you create if it’s not legally backed. 

Which is why taking action to actually protect what you create is SO important!

One of the most common mistakes I see business owners making is failing to protect their intellectual property, such as logos, product names, and content, which can lead to theft or misuse by competitors.

➡️ HOW TO AVOID: The easiest way to avoid this is to copyright EVERYTHING! Like for real… everything you create should be copyrighted. Here’s a closer look at why, where, and how!

And even better, HERE is a free copyright notice for digital products that you can download and implement right away.

Beyond copyrighting your content, you may also need to trademark certain things throughout your business, such as your business name, offer names, etc. 

There’s a difference between copyright and trademark and I explain that more in depth HERE!

Registering for a trademark as a business owner can feel pretty intimidating, so I’ve done my best to explain the process as simply as possible for you HERE!

3. Non-Compliance with Data Privacy Laws

Another big no-no that I see online business owners making is straight up ignoring privacy laws. While this might not seem like a big deal, it can actually cost you up to $2,500 per visitor to your site if you fail to include a privacy policy. 🤯

Not to mention the way it can make your audience feel if you aren’t straight up with how you’re using they’re personal data. 

➡️ HOW TO AVOID: implement a Privacy Policy on your website!

Easy, peasy. It really is that simple. 

This legal agreement is simply a detailed notice that’s typically found in the footer of your website that outlines how your website collects, uses and manages a user’s personal information.

For a closer look at the risk of NOT having a privacy policy on your website, click here. 

4. Using Unclear or Incomplete Contracts (or worse… not using contracts at all 🫣)

Next up on our list is contracts, which just so happens to be my specialty in the online business world. The only thing worse than using unclear or incomplete contracts in your online business is not using them at all!

YES, I want you to implement contracts in your business, but NO I don’t want you to just quickly throw them together and have unclear language or leave out certain clauses. 

Doing so can leave your business exposed to disputes with clients and lead to incredibly annoying challenges, like late payments, chargeback or refund requests, scope creep, and more. 

All things that I’m willing to bet you realllyyyy don’t have time for.

➡️ HOW TO AVOID: use well-drafted contracts that clearly outline the obligations of all parties involved!

Your contracts should always include key clauses such as payment terms, statement of work (SOW), client and company responsibilities, IP ownership clause, termination clause, confidentiality, dispute resolution, and more.

Not only do you need to implement contracts in your business, it’s also important to regularly review and update your contracts to reflect any changes in your business operations or legal requirements. I suggest doing a quarterly contract audit at minimum!

When it comes to contracts for your online business, you *could* DIY them and hope for the best OR you could browse The Boutique Lawyer Contract Shop and find exactly what you need for your specific industry. I’ll let you decide. 😉

5. Failing to Disclose Ads or Affiliate Content 

Did you know that you are LEGALLY required to disclaim your participation in gifted collabs, brand deals, affiliate programs, etc.?

It’s true! Any type of promotion that can lead to you receiving money, requires a disclaimer.

As a business owner, you could potentially face an enforcement action (aka get sued) under the Federal Trade Commission for failing to disclose gifted, paid or sponsored collaborations with brands or influencers.

While I am a huge supporter of affiliate marketing and I encourage you to pursue opportunities like this, make sure you’re backing yourself up legally before doing so!

➡️ HOW TO AVOID: implement a General Disclaimer on your website AND use written disclaimers on all sponsored content on social media, in your blog posts, etc. 

For blog posts or social media content, you can say something as simple as this:

“P.S. This blog post contains affiliate links, but I only ever recommend products or services that I love and use myself!”

For a deeper dive into how to properly disclose sponsored content, click here!

Overall, by understanding and addressing these common legal pitfalls, you can ultimately protect your online business from unnecessary risks and set a strong foundation for long-term success.

While legal compliance might seem daunting, it’s an essential part of running a responsible and sustainable business and investing the time and effort to avoid these mistakes NOW can save you from costly disputes and legal troubles down the road, allowing you to focus on what you do best: growing your business. 🎉

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If we haven’t had the chance to *virtually* meet yet, hey I’m Amber – not a regular lawyer, but a cool lawyer that helps online business owners sell without getting sued. 

If you like what you just read and want more cool lawyer things in your life, here’s a few ways to stay connected:

Let’s be pen pals! Subscribe to my email list to receive all of my best biz tips and behind the scenes goodies to keep your business bringing in sales (legally of course).

Binge the blog to get all of the legal information you need about running a business in a way that actually makes sense to your non-legal brain.

Come hang with me on the ‘gram! I often do AMA’s on stories, so you can submit your specific questions when they come up.

And if you’re in need of legal resources that you can ACTUALLY understand? Here’s a few ways I can help:

Step into TBL’s free library of legal resources for creative entrepreneurs where we throw open the doors and spill the tea on what works and what doesn’t when it comes to legal protection, systems and sales.  

Browse the contract template shop to find what’s missing in your biz and easily implement it with a plug and play template!
Need something else? Send me a DM! Always happy to lend a legal hand when I can.