17 {{ upvoteCount | shortNum }}
17 {{ upvoteCount | shortNum }}

I've got something here...

by Madshark
15 replies
I'm no guru...Far from it in fact. I've made a total of $0.47 online thanks to adsense, and did OK selling websites to local business for 6 months or so. With that being said, sometimes you know when your on to something.

I'm also no lawyer so please don't rush to judge if I seem to be vague. I signed a "No-Compete Contract" When I started working for this business.

I work for a small company that does more than $1.5 million per year in revenue. All I feel comfortable talking about right now is that this company sells (actually brokers or "middlemans") something over the phone. Something that has absolutely nothing to do with website, seo or literally anything that has been discussed on this forum. Far from it actually

Here is the kicker...The entire business model is simpler than about 90% of the WSO's I have purchased from this website. I make 20% commission on my deals and have been living pretty good. Nothing extravagant, but am on pace to make about $60,000 this year. AND THATS ONLY MAKING 20%!!! The rest goes to the company. Oh, and did I mention overhead? NO i didn't. Thats because its next to nothing.

Add that to fact that one of the top dogs left the company last year to "go solo" and is making 6 figures now working out of his garage!

I got this job with no HS Diploma, no Drug test and No references.

look, this isn't click bait or trolling or none of that. I just know that I could write a "How to Guide" on this and sell it for who knows what and people would be thrilled.

I JUST NEED SOME GUIDANCE FROM SOMEONE SMARTER THAN ME!
  • Profile picture of the author iAmNameLess
    If you signed a no compete, and that's why you're being vague then why would you want to profit off of it? That would definitely be more of a reason for you to be sued.

    Anyway, from what you say.... it seems like the owner of the company that hired you should release a product, not you.
    Signature
    {{ DiscussionBoard.errors[9533467].message }}
    • Profile picture of the author JKirby
      Originally Posted by iAmNameLess View Post

      That would definitely be more of a reason for you to be sued.
      Seems like when he signed a No-Compete Contract, he obviously doesn't know what that means.
      {{ DiscussionBoard.errors[9533502].message }}
  • Profile picture of the author Joe Stewart
    Originally Posted by Madshark View Post


    I'm also no lawyer so please don't rush to judge if I seem to be vague. I signed a "No-Compete Contract" When I started working for this business.
    Did the other guy that's now making 6 figures from his garage sign a no-compete clause too? If so, there's probably a reason that he's still working - because they may not have as much leverage as they thought.

    Talk to an attorney about the agreement you signed. I'm assuming you have a copy of the document, right? I'd hope so.

    Most non-compete agreements must have some type of compensation in place for not taking a job elsewhere, they must have a time limit of a specific period, like 6-12 months or both.

    Actually, did you sign a non-compete agreement or non-disclosure agreement? There's a difference. I won a non-disclosure agreement case several years ago simply because the judge thought that people should be allowed to continue to work in a field that they've been trained in. Also, their trade secrets weren't really secrets. It could be found if people simply knew where to look. Of course, this may vary from state to state.

    Definitely speak to an attorney. If you DO get the green light that it's okay to proceed, I'd still create an LLC or incorporate, just in case they did decide to sue you and won. That way your personal posessions "should" be protected. Once again, tak to an attorney.

    Good luck.
    Signature

    My New "Share All" Blog Is Coming Soon! Online & Offline Marketing, More!

    http://www.UnCENTSored.com

    {{ DiscussionBoard.errors[9533541].message }}
  • Profile picture of the author JKirby
    To be honest what you're looking at doing will probably have been already covered by the small business.

    Let's examine the facts. You were hired recently. The top dog left a year ago. The small business is very successful. What it sounds like here is that the small business didn't have their ducks in a row, and when their top dog left the company, they got the raw end of the stick and pursued a legal course of action.

    In this legal action, their lawyer mandated that they use Noncompete Contracts for any new employees or contractors. You don't need to be a lawyer to understand what you signed. There will be a time limit (usually after you leave a company) of 6+ months. So if you left today, you would have to wait 6 months to do anything without fear of legal recourse.

    Good luck in your endeavors, but there's a reason why they had you sign a NCC. If you don't understand what's on the contract, then you've got other problems, not just how you can create a product from it.

    What your best course is to talk to a lawyer, but that would cost $$$. Your other step is honestly to find someone outside of the restricted area (usually covered in a NCC or CNC) and have them get into a JV with you. Second option is shady, but may give you a better and safer outcome.
    {{ DiscussionBoard.errors[9533590].message }}
  • Profile picture of the author clawHAMMER
    You have some good advice here. Speak to an attorney but you really don't need to pay out of pocket to speak to one or for a consultation. Ask me how I know.

    You can check out LawGuru.com for free as well as FreeAdvice.com I think it is. I've used them a couple times in the past regarding some legal issues and got the answer I needed without it costing me time or money. Don't know if they can assist you or not but they're lawyers so I don't know why not. At least you'll have a better idea what your options are before you spend your funds on some legal advice.

    Good luck
    Signature

    ~"We cannot direct the wind but we can adjust the sails."
    ~"Never say never cause you never know!"
    ~"Yes, there are two paths you can go by, but in the long run there is still time to change the road you're on." - Led Zep

    {{ DiscussionBoard.errors[9534982].message }}
  • Profile picture of the author misterme
    He wants to write a how to guide. He's not looking to open up a rival business. A non disclosure is what would prevent him from writing a guide. Could be the non disclosure is part of the no-compete agreement though.
    {{ DiscussionBoard.errors[9535596].message }}
    • Profile picture of the author Joe Stewart
      Originally Posted by misterme View Post

      He wants to write a how to guide. He's not looking to open up a rival business. A non disclosure is what would prevent him from writing a guide. Could be the non disclosure is part of the no-compete agreement though.
      Oops! I misunderstood, obviously. Honestly, I think that would be kind of foolish. If it's about working independently, then absolutely pursue it. But if it's about creating an information product to share their business secrets, that's cold.

      If this is an uncommon business or business model, if I were them I'd seriously consider pursing action against you for any information shared. I'd sue you for any damages, both present and future, as a result of your actions. I'd also request that all profits resulting from the sales be given to me.

      Wanting to break away and start your own business is one thing. Wanting to SHARE their business secrets is another, especially if your intent is to sell them for profit. I'd research this carefully and consult with an attorney if you're seriously considering this.
      Signature

      My New "Share All" Blog Is Coming Soon! Online & Offline Marketing, More!

      http://www.UnCENTSored.com

      {{ DiscussionBoard.errors[9535641].message }}
      • Profile picture of the author baxterblue
        Originally Posted by Joe Stewart View Post

        If this is an uncommon business or business model, if I were them I'd seriously consider pursing action against you for any information shared AND I'd countersue you for any damages, both present and future, as a result of your actions. I'd also request that all profits resulting from the sales be given to me.

        Wanting to break away and start your own business is one thing. Wanting to SHARE their business secrets is another, especially if your intent is to sell them for profit. I'd research this carefully and consult with an attorney if you're seriously considering this.
        SPOT ON!!! GREAT ADVICE!!!
        {{ DiscussionBoard.errors[9535762].message }}
        • Profile picture of the author Joe Stewart
          Originally Posted by baxterblue View Post

          SPOT ON!!! GREAT ADVICE!!!
          I didn't mean to write "countersue". My eyes are freaking batty the past few days as I'm breaking in new glasses.
          Signature

          My New "Share All" Blog Is Coming Soon! Online & Offline Marketing, More!

          http://www.UnCENTSored.com

          {{ DiscussionBoard.errors[9535786].message }}
    • Profile picture of the author JKirby
      Originally Posted by misterme View Post

      Could be the non disclosure is part of the no-compete agreement though.
      Most NCC or CNCs involved not providing competition within a set location. Creating a product and divulging their trade secrets would inherently create competition for the employer. This would honestly create a field day for a prosecuting attorney. I bet they'd even go as far for making a case out of every copy sold.

      Branching off and running your business is one count. Selling a hundred copies of the exact strategy would also be a deviant way of doing the same.
      {{ DiscussionBoard.errors[9535803].message }}
      • Profile picture of the author savidge4
        Ironically even if the guy did sign a "No Compete Agreement" it is more than likely geographically encompassing. So a nice little trip to the Bahamas and a few hundred bucks later, with a business license and a offshore server.. your all set.
        Signature
        Success is an ACT not an idea
        {{ DiscussionBoard.errors[9536268].message }}
        • Profile picture of the author JKirby
          Originally Posted by savidge4 View Post

          Ironically even if the guy did sign a "No Compete Agreement" it is more than likely geographically encompassing. So a nice little trip to the Bahamas and a few hundred bucks later, with a business license and a offshore server.. your all set.
          Which should cover him if he was going to run a business, but the product creation would still be open game for attorneys to crucify him for I think.
          {{ DiscussionBoard.errors[9536354].message }}
          • Profile picture of the author savidge4
            Originally Posted by JKirby View Post

            Which should cover him if he was going to run a business, but the product creation would still be open game for attorneys to crucify him for I think.
            but is there more than 1 person doing this business? We at this point know of 2. and what exactly does "product" have to do with a no compete? If they are not competing in a geographical region for whatever period of time, that's it. That's why if you talk with an attorney about said contracts with employees, you would understand that they are about useless.

            How specific is the contract? does it say they will not do business in said town? said county? ( I doubt ) said state? ( I doubt ) No competes are just short of silly. Did you know they are not valid in the state of California? ( with minor exception such as selling a business )

            There is probably a better than great possibility that the OP lives outside the geographical location that is covered under the terms of the contract.

            What a non compete is intended for is to hinder a contractor or employee from "going to the competition" OR calling on the ex employers client list. The other side of this is to protect a "Trade Secret" some formula or device. that is NOT common knowledge. Unless we are talking KFC's 11 herbs and spices or the like, this is a tough one to defend in court.
            Signature
            Success is an ACT not an idea
            {{ DiscussionBoard.errors[9536402].message }}
            • Profile picture of the author JKirby
              Originally Posted by savidge4 View Post

              but is there more than 1 person doing this business? We at this point know of 2. and what exactly does "product" have to do with a no compete?
              [...]
              What a non compete is intended for is to hinder a contractor or employee from "going to the competition" OR calling on the ex employers client list. The other side of this is to protect a "Trade Secret" some formula or device. that is NOT common knowledge. Unless we are talking KFC's 11 herbs and spices or the like, this is a tough one to defend in court.
              The "product" was in the OP's initial claim. He is trying to figure out the legalities of making a product/course that explains the business model to sell to people on a medium such as WF.

              I understand what CNCs and NCCs do, and by creating a product and distributing it he would be creating more competition and teaching the 'Trade Secrets'.

              CNCs and NCCs don't hold up well in court, but by intentionally creating a product for the purpose of exposing a business model for PROFIT...

              Yeah, attorneys would eat that sh*t up.
              {{ DiscussionBoard.errors[9536443].message }}
              • Profile picture of the author savidge4
                Originally Posted by JKirby View Post

                The "product" was in the OP's initial claim. He is trying to figure out the legalities of making a product/course that explains the business model to sell to people on a medium such as WF.

                I understand what CNCs and NCCs do, and by creating a product and distributing it he would be creating more competition and teaching the 'Trade Secrets'.

                CNCs and NCCs don't hold up well in court, but by intentionally creating a product for the purpose of exposing a business model for PROFIT...

                Yeah, attorneys would eat that sh*t up.
                But you are assuming that there are "Trade Secret's". and again he could only be restrained from doing so within the confines of the geographical location. The burdon of proof falls to the employer #1 that action is / was being taken to maintain the "Trade Secret" #2 that in fact IT IS a "Trade Secret" #3 that in fact it does NOT fall under common knowledge.

                I think the only way attorneys would be eating anything in this deal is if they went for lunch.
                Signature
                Success is an ACT not an idea
                {{ DiscussionBoard.errors[9536528].message }}

Trending Topics