I lost a consulting job closing week — and how it came about is a mountainous lesson for freelancers and company owners.
Some backstory: An company proprietor wished to accomplice on a probable consumer mission. We had spoken sooner than and “clicked” effectively, so I modified into chuffed to assist with the proposal and present my hiss material tips.
Particularly since they’d hire me to work on the mission when the probability signed on the backside line.
The coolest files for the company proprietor? They purchased the gig.
The harmful files for me modified into the end consumer insisted I designate a non-compete to attain assist on board. The contract restricted me from working with a listing of firms (the end consumer’s “competitors”) for three years.
That meant I couldn’t work with the firms AT ALL — even within the occasion that they without prolong contacted me. Even if the work I’d make for the competing firms modified into entirely completely different.
My company friend couldn’t hire me in step with the end consumer’s contractual phrases UNLESS I signed the non-compete.
Which I wouldn’t make.
So I walked away. I hated to make it, nevertheless I walked away.
And while you’re faced with an identical reveal, you are going to need to contain in tips strolling away too.
What’s the immense deal about freelancers signing non-compete agreements?
I’m so ecstatic you asked.
Typically, while you’re employed with an company, their contract states that it’s doubtless you’ll perchance’t solicit their possibilities. Finally, the company doesn’t desire you contacting their possibilities, announcing, “Hi there, I’m already writing your hiss material. Why no longer hire me without prolong and cut the company out of it?”
That, to me, is ideal.
Nonetheless imagine this…
Let’s mutter you land a $5,000 contract with a B2B SaaS company that makes you designate a non-compete. It be essential to assist two years sooner than working with one other B2B SaaS company.
It would possibly perchance also merely no longer feel cherish a immense deal for the time being. Finally, you merely made a 5K sale!
Then, 18-months later, one other B2B SaaS company needs you to hunt the advice of with them. They’re prepared to designate a $25,000 settlement…nevertheless it’s doubtless you’ll perchance’t steal the gig.
Why? Because you signed away your rights 18 months ago.
(You see where this is going?)
Help in my twenties, I realized this lesson the troublesome procedure. I accredited a gross sales job and stupidly signed a non-compete. The job modified into dreadful, and I lasted all of two weeks.
I purchased a fresh job immediate — nevertheless I couldn’t initiate till the corporate president released me from the non-compete. I needed to music him down and beg him to let me out of the contract.
It took weeks. Weeks with ZERO earnings thanks to that dead contract.
Yeah, never all once more. That’s why many states don’t establish in force employment non-compete agreements.
You would possibly perchance also’t restrict how any individual makes a living.
Does that imply freelance writers or companies would possibly perchance perchance also merely silent never designate non-competes?
Now now not essentially. Nonetheless, this IS a reveal where you ought to rep an authorized professional lively sooner than you designate. Repeatedly.
Why? Assuming you ought to switch forward with the patron, your authorized professional ensures your merely to rep a living is reliable. Non-competes are engaging, and within the occasion that they’re too righteous or the length is simply too prolonged, your earnings is at disaster.
Plus, it’s doubtless you’ll perchance also very effectively be so considering touchdown the patron that you just don’t see the a ways-reaching ramifications. Your authorized professional can dispassionately expose the hazards and trade-offs and craft an settlement that’s more on your favor.
As an illustration, if a company wished to present you a humongous yearly retainer in trade for no longer working with Company X, effectively, that can perchance also very effectively be charge it. You’d be getting something in trade for signing a non-compete.
Or in all likelihood the patron would agree to shorten the non-compete length from three years to at least one. It’s no longer mountainous, nevertheless it completely would possibly perchance perchance also very effectively be workable in some scenarios.
Impartial appropriate don’t designate away your merely to make commercial without getting something in return. And, in elaborate for you to negotiate your non-compete, frequently rep an authorized professional’s assist.
Your livelihood is simply too treasured to designate away for one dead consumer.
What make you watched?
Indulge in you been asked to designate a non-compete? How did you contend with it? Leave a commentary and uncover me all about it!