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non compete agreement for employees

having employees work on your affiliate sites

         

stinky

3:06 am on Oct 11, 2007 (gmt 0)

10+ Year Member



I am looking to hire employees to help me run and create more affiliate sites. My questions are 1) with a non compete agreement, where employees agree not to work on or for sites similar to your for a period of time, how long should this time frame be? 1 year, 2, 3, 4?
2) How do you go about showing an employee your affiliate site and have them do work for you without them thinking, hey i can just do this myself? I was thinking of just telling them i own the main site and set up affiliate sites to keep my business growing. Is that a good or bad idea?
I feel alittle odd having employees do this work but i know it is the only why for me to move forward in developing more site. Does anybody have any experience in this kind of situation, if yes how did you handle it and make yourself feel comfortable showing someone your business.

vincevincevince

3:30 am on Oct 11, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Even if one employee does turn against you and make his own site, is he really going to cause you loss in the market? I can't imagine that he could compete with your multi-employee company and years of expertise by himself. There are countless affiliate programmes and even more affiliates; one more shouldn't hurt you.

Habtom

9:21 am on Oct 11, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



How do you go about showing an employee your affiliate site and have them do work for you without them thinking, hey i can just do this myself?

My previous employer tried to make me sign one of those papers. It still makes me laugh to this date. He tried a certain way of handling the issue though, the way I see it. He tried to divide tasks and maintained a way of not everybody learn everything at a time. But I was a bit beyond what his plans. I had to pretend I didn't know a few things for his own security. But I learned every bit of the business for all the good reasons, but later I couldn't stand working there for whatever amount I was getting paid.

In my opinion again, it was very bad for him to lose somebody like me whom he trusted, but tried to do it without any fair incentives. I am loyal to the point that I felt I was teated well, beyond that, I categorize it under exploitation so I am out of the whole thing.

I was way out of the job in my heart a month or so ago, before I ended up leaving the job. Thankfully though, few months down the road, I work for a company where the environment is like nothing before, and the salary is well, no words for it. My ecom sites (result of not signing the non compete) are all doing well beyond my expectations.

I don't know how this relates to your story, but never ever try to cheat them in that way or understimate them, let go of somethings, but divide tasks among those people so that your business doesn't revolve around one employee.

Good luck

[edited by: Habtom at 9:26 am (utc) on Oct. 11, 2007]

stinky

2:32 pm on Oct 11, 2007 (gmt 0)

10+ Year Member



vincevincevince that is a good point and makes me feel better.

Habtom I am hiring college kids to do the work because they tend to work for less and they are easy to find new ones to do the work. They will be doing basic web design, writing some basic content for the sites and using my link exchange program to find link partners. When they are done with 1 site they will move on to reproduce another and so on. So even if one worker quits its easy to find a new one.
Habtom did you create a web site similar to the employer that job you left?

Habtom

4:48 pm on Oct 11, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Habtom did you create a web site similar to the employer that job you left?

One thing I tried best was not to copy the idea as it is, so in a way I have a similar business. Copy? No.

Mine is more of a work in progress. I won't be settle for any profits, it is more of proving the theories I have had. But I made so much clear myself, I used the knowledge I gained, not the physical resources of the employer (like code, partners and other materials).

vincevincevince

1:31 am on Oct 12, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



You can have a loyal employee who will always stick by your side, or you can have an ambitious employee who will work hard to bring innovation and improvements to your company. Pick one.

aspdaddy

5:59 pm on Oct 13, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Do you actually need a non-competetion clause, or copyright/IPR or just a confidentiallity clause?

If you want it, be prepared to pay a premium for it and the employee will usually put thier own counter-terms into the contract in as well, its quite normal.

King_Fisher

7:23 pm on Oct 13, 2007 (gmt 0)

10+ Year Member



Stinky,

You might be a little paranoid about this.

I have farmed out work and hired help over the years and have yet to see anyone

try to copy the idea, code, graphics etc.(could this be a reflection on the

quality of my ideas? :o) But seriously to most it is just a job and no more.

In fact if they want to steal some good ideas all they have to do is cruise the

web and copy some of the proven winners!...KF

Fortune Hunter

9:06 pm on Oct 16, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I am hiring college kids to do the work because they tend to work for less and they are easy to find new ones to do the work.

I have been down this road myself this year, many more times than I would care to mention. College students might work for less, but in my experience they are totally unreliable and you will spend so much time checking their work and training new ones as the old ones quit in droves that you would have been better off hiring a decent person to start, paying them more, and having a solid non-compete agreement in place.

Gibble

9:24 pm on Oct 16, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



They work for less, yet cost you more. What takes them a day, a good programmer does in an hour.

And while they may follow your instructions to the letter, they can't necessarily offer suggestions, or see design flaws until it's too late. An experienced person can...which again, saves you money.

Given the choice between a couple experienced programmers, or half a dozen college kids, I'd take the experienced programmers in a heart beat.

Gibble

9:28 pm on Oct 16, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



The other downside to a non-compete...is, while I sort of have one with my employer, he's not going to get new innovative ideas from me that I think will make money. Partly because I'm sure I'll get no recognition for it or monetary gain from an idea that makes him more money, mostly, because if it's different than his current business, I've just narrowed the things I can freelance on by one more thing.

mjwalshe

1:18 pm on Oct 17, 2007 (gmt 0)

10+ Year Member



re non competes

Well for low level positions like the ones we are talking about here basicly your #*$! out of luck.

In the Uk/USA derived legal systems (ie master and servent's act) non competes are hard to enforce as you cant stop someone plying there trade.

They tend to be only used at high level positions eg Matt Cutts would probaly have a non compete (in search engine area) if he left Google but it would be for a short term anything to long would be struck down. And you would expect to a paid for singing a non compete. It also can't be to broad.

Fortune Hunter

11:13 pm on Oct 18, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



non competes are hard to enforce as you cant stop someone plying there trade.

I wouldn't bet the ranch on that! I have had two non-competes enforced on me during my career despite the fact that I was simply trying to get a job in a very bad market and simply wanted to work and "ply my trade" as you say.

While it is true that some judges look down on employers trying to unfairly stop someone from working under a non-compete they can still be enforced and a good attorney [for the other side] will corner the judge into stopping you from working.

plumsauce

5:58 am on Oct 19, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member




I have a cardinal rule as a contractor/supplier:

never,ever sign a non-compete/nda

my knowledge and experience are my stock in trade.

i learn something from everything.

what i bring to the table today, is something that might have been covered by a non-compete yesterday.

-- if i had been so foolish as to sign one.

i put it this way:

i bring more to the table than i will ever be able to take away.

signing a non-compete is like opening my toolbox and handing you my 13mm wrench that i've had since high school. ain't gonna happen.

Gibble

2:00 pm on Oct 19, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



well, as long as you still have the 1/2" wrench you're ok ;)

Fortune Hunter

8:05 pm on Oct 19, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



never,ever sign a non-compete/nda

I would agree with you on the non-compete agreement, but I often do sign NDA agreements, especially when working for a larger company. I find the trick is to use MY NDA agreement. My agreement basically states I cannot share or use any proprietary company information that is unique to their business. In other words it says if I learn confidential info from them I cannot disclose or use it anywhere else. To me this is fair and I can live with it.

plumsauce

9:45 pm on Oct 19, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I agree with you on the NDA. Mostly, they are fine. As a matter of fact they can help you to define your freedoms. If it's not covered in the NDA, it's yours. Even without an NDA, I would never use specific knowledge gained from a client. It's a matter of ethics. The NDA is just an attempt to codify the matter.

I was using hyperbole to make the point.

well, as long as you still have the 1/2" wrench you're ok ;)

But what about my 4 pairs of vise grips?

D_Blackwell

1:26 am on Oct 21, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



How do you go about showing an employee your affiliate site and have them do work for you without them thinking, hey i can just do this myself?

If they have the skills, they already know. It's a question of their interests and priorities (Do they have such ambitions, and the willingness to take the risks as well?), and their satisfaction as an employee. (Do you take good care of them, or are you an exploiter?)

and the employee will usually put their own counter-terms into the contract in as well, its quite normal.

I wouldn't give a non-compete. If the relationship goes sour, may the best man win:))

he's not going to get new innovative ideas from me that I think will make money. Partly because I'm sure I'll get no recognition for it or monetary gain from an idea that makes him more money, mostly, because if it's different than his current business, I've just narrowed the things I can freelance on by one more thing.

More often than not, owners' bring the financial and psychological wherewithal - the willingness to gauge and fund acceptable risks for the potential rewards. Employees, even if they can fund the venture, may simply be too risk averse to splash around in shark infested waters:))

Employees most often bring the expertise and skills that keeps the trains running; something an astonishing number of owners totally lack:))

Some people have the capability to do both. I have been, and remain, on both sides. (A primary employer, and a few unrelated niches and an employee on the side.) I'm happy to provide excellent service for my employer, and have built a nice operation for them. That 'money in the bank' check is a nice thing to have. I also have zero interest in competing anyway. (Too much stress, too much capital outlay, not enough return to interest me, big time 80%-20% factor - though I generally like the business, the company, the owner...)

However, if the owner suddenly felt the need for a non-compete we would most likely swiftly part company and I would certainly be inclined to monetize my expertise in order to offset the income loss. I know the business, the competition, the vendors, the customers.....

I would give an NDA if requested, but once one acquires a knowledge of a certain breadth and depth within a field it would be easy enough to become a player if so inclined.

aspdaddy

7:53 am on Oct 21, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



never,ever sign a non-compete/nda

I signed one once, all it meant that for 6 months after leaving I couldnt work for direct competitors and was paid for 6 month 'gardening'. Looking back, having that company name on my cv has been well worth it, its opened a lot of doors. Without the con-compete I couldnt have worked for them.

Fortune Hunter

2:25 am on Oct 22, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



was paid for 6 month 'gardening'

I would just go ahead and retire and never work again if I was paid the whole time to "not compete" as it were. Unfortunately I believe your situation was a serious minority. In both of my situations I was tossed out on my rear side with no more than a 2 week severance check and a 1 year non-compete to deal with. Not fun, I assure you. No name on my resume is worth me sitting out of this frontier for a year.

aspdaddy

4:04 pm on Oct 23, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Its not a serious minority in my experience in the UK / IT sector. Its quite common for senior positions or roles involving development of new ideas/products/services to have non-competes.

What is very normal with these is a period of contract negotiation, between the agency, employer and employee. It has to work for all involved at the end of day you only sign what you are happy with as with any other employment contract if you dont like the terms dont work for them.

You dont have to sit-out, the non-compete is usually applied to being employed in a similar role by a v small number of direct competitors. E.g developing one online bookstore then switching to work for the other one

mjwalshe

12:44 pm on Oct 25, 2007 (gmt 0)

10+ Year Member



Fortune Hunter

They made you redundant (with legal minumum)and still try'd to enforce a non compete wow thats #*$!y.

was this a RTW state?

Think you got screwed on that one idf that was in the tech industry Id be tempted to pass that snippet on the register or vallywag.