Competition with former employer??

[heni30]

This is just a general question. If you leave a job on good terms to go out on your own and there is no non-compete agreement, what are the issues, ethical? moral?, to be taken into account when contacting your ex's clients?

 

To make matters more complicated what if your ex has a substantial overhead and you are working out of your home and you can charge 20% less for the same product?

 

And you can bring in subs to provide the same level of service?

 

I know there is nothing stopping someone from doing that but I know I would not feel good about it if it happened to me.

Edited April 14, 2014 by heni30

[Scott Schroeder]

It's business, though a bit shady. Yet don't too feel bad because your previous employer would not even blink an eye to take work away from you.

 

As long as you are not violating the non-compete in any way, there is nothing to worry about (unless you ever want to go work for your former employer again). Besides the company may like working with your former employer and tell you to go kick rocks, so land the job before you start to worry about the implications.

[John Dollus]

I would highly advise against pursuing clients that have existing relationships with former employers.

There are many reasons but keep in mind that this is a very small business sector and doing such a thing may kill your future employment prospects. Why would any studio ever hire you knowing that you have no qualms with usurping their cultivated business relationships?

 

Also, consider the value of having a client that so quickly switches their own commitments to a business relationship.

It's kind like personal relationships - Once a cheater, always a cheater.

[Francisco Penaloza]

I know there is nothing stopping someone from doing that but I know I would not feel good about it if it happened to me.

 

I think you answer your own question

 

If it does not feel OK for you, why do it.

IF you are starving, well then there is no choice.

[heni30]

What's that expression? - It's a jungle out there?

 

I think it is true that a strong client relationship - knowing someone, trusting someone, reliability, knowing what to expect - will outweigh a lower price.

 

However a lower price, plus a bottle of Chivas, tickets to the playoffs and.........

Edited April 15, 2014 by heni30

[notamondayfan]

Unless you are offering something substantially different to your ex-employer, then I'd stay away, and look for clients else where. It sounds just LAZY to me, and you are hoping to steal their clients.

 

But let's look at things from the clients perspective, why would they want to terminate their relationship with your ex over you? Immediately you're coming across as un-trustworthy, and ethically shady. Do you think the clients are going to trust you in return?!

[heni30]

I'm just trying to explore as many sides to this issue as possible.

 

I think steal is too strong a word. We do live in a capitalistic, free market society.

Did the Japanese steal the car industry from General Motors? Did the Chinese steal the steel industry from Bethlehem?

 

Another point is that realistically speaking there are only a finite number of clients and a limited number of those who would

have the most desirable jobs both in terms of profit and interesting projects.

 

One is free to approach ANYONE. The fact that you contact Client X because you found them in the phone book is no different than if you contact them because your ex happened to do work for them.

You usually don't know of a client only because your ex did work for them. You know them because of their work; their reputation; their professional standing. You being an employee did not give you secret knowledge of their existence.

 

Nils said he had 60 ongoing jobs. Does that mean you are strictly prohibited from sending work samples to any of them? Especially if you're just starting out. You can't realistically be limited to "virgin" clients who've never had work done before.

 

And the question is not just academic. There's the matter of having to make money and maybe having to support a family and put food on the table.

 

And in the long run the competition is good for everyone including your ex. I lost a client because I didn't treat them seriously because they designed supermarkets and not cutting edge cool stuff. If the ex knows there's competition out there they will strive to povide the best product and service possible.

 

There's no such thing as "hands off" unless you agreed to it when you came on board.

Edited April 16, 2014 by heni30

[Scott Schroeder]

There is no rule, but it is a lot like dating your best friend's ex. Most people will frown on the idea of it.

 

Part of me says it's just the business world and part of me says it's really shady business. I guess it depends on how you go about it. If you contact the client through the back channels and directly market against your former employee using price/time/quality comparisons, then that's being quite a tool. If you had a good working relationship with the client, you make an even and unbiased pitch through the proper communication channels, and they in the end prefer working with you, then maybe that falls under the healthy competition category in my book.

[heni30]

I totally agree. It all depends on how it's handled.

Edited April 16, 2014 by heni30