My students pay by the semester, and my policy states no makeups and no refunds. They are paying for a time slot that I have reserved for them, in other words, they are paying for my time whether they use it or not. What can I do with 30 minutes suddenly open between 2 other students? I am still "on the clock" so to speak, and like any other employee who might have a little "down time" during the work day, I still expect to be paid for the full day. While it's true that the student can't help it if s/he gets sick, that doesn't change the fact that I need a steady income, and I do not provide my students with an "insurance policy" against illness or other absences. Sports teams, dance studios, gymnastics, etc, don't give makeups or refunds to students who miss. I do hand out a swap list, so parents can try to switch times if a conflict arises. I know that this sounds harsh, but it really has worked well for me. I explain it thoroughly at the initial interview. BTW, I will *occassionally* offer extended lesson time or an extra lesson if the student is hard-working, has excellent attendance in general, etc, but only if it's convenient for me. The parent is quite appreciative of such efforts because they realize I'm basically "working off the clock" for them.