I Don’t Do NDA’s

| ,

Last week I mentioned that I don’t respond to cold partner offers, and some of the reasons why. I’ve been wanting to write this specific post for a long time, but haven’t done so mainly because I had a hard time verbalizing my rationale. I was working on a gut feeling, with the end still serving my belief, but without any support for why that belief was valid. I think that I’ve thought it through enough now that I can give a more concrete answer.

Originally, my argument was that ideas are a dime a dozen, and that I’m too busy to take time stealing your ideas, since I have plenty of my own that I’ve not acted on. As I mentioned in that prior post, I won’t show nearly as much enthusiasm for someone else’s idea, so the chance that I’d implement it would be slim to none.

Note that I’m specifically talking about cold NDA’s, where I’m requested to sign one before even talking to someone about their company. That is a sign of backwards priorities for me. I mentally see someone who has an idea (most likely not even half unique) who envisions themselves as a paragon of business, using their (again, not unique) talents as a business person to marshal others together toward a common goal: making that founder boatloads of “internet money”.

There’s a way to protect your idea: make the value proposition not about the idea (which it already isn’t anyway). Tell me that you have a B2B marketing idea, and you are the exact person to implement it because of your 20 year experience in B2B marketing. Show me that I would be wasting time trying to develop a warehouse logistics tool without your guidance, since your tenure as a VP at a Fortune 500 shipping company gives you insight that I could never have.

If you can’t explain this in your pitch then it doesn’t matter. No matter how good your idea is, if you cannot prove yourself indispensable, then there’s no reason that you can’t be dispensed with.

Protecting an idea is generally an exercise in futility. No one is contacting me who has a wholly unique, patentable process that has not been thought up before. Not only that, but it weakens the state of that idea. I would much rather allow market competition, or the fitness of the executor of any new product or service to determine success, not simply a document gagging others from discussing it. If you share your idea with someone who is in a much better position to make it into a reality, then I’m probably going to buy from them anyway, as will the general market.

In the end, the market does not care about who thought up what first. It cares about who did it best, cheapest, most effectively and efficiently, and most used. Popularity and breaking free of the long tail validates and pushes even more people to use a product or service, and the network effect is one of the few things that cannot be bought.

If the first thing separating you and me from having a conversation is a negatively charged legal document, it may as well be an ocean.

7 responses to “I Don’t Do NDA’s”

  1. roger Avatar
    roger

    you are a consultant. you get paid to give or do something. THIS IS ALL. A blog consultant at that. reality check.

    you are not a management consultant. you do not have a world class mba or have any reason to refuse a NDA.

    This is standard business practice. IF you want to buy a building, you have to sign a NDA. IF you want to hire an agency for an acting gig they sign NDAs.

    WHERE you don’t sign NDAs is when you are a VC, where your job is to allocate capital to private companies whose shares you are buying because they see 50m twitter meets cupids all day. AND THEY GIVE MONEY out not take it. big difference.

    why limit yourself? The standard big company practice of nda’s- everyone that has read a RFP knows you need an nda prior. same w. gov’t and muni business. nda or not nda the disclosure is limited to the company- a real smart guy- edits it and then sends it back- but only to small guys not huge- you will never get in the door.

    you should really delete this comment and your posts, because you come off as a 16yr old punk kid- especially with the gay t-shirt smiling picture with the hospital bracelet on. stickers on your laptop?

    come on man, this is your profession. be a bit grown up.

    No company is going to agree with you- you may be only preaching to the broke ass choir you belong to.

    1. david Avatar
      david

      Hi Roger, thanks for commenting. I do have a company, this just happens to be my personal blog. I definitely wouldn’t consider this my consulting area, since I know that I’m posting far too infrequently for that 🙂

      I do believe that I have a reason to refuse NDAs – I choose not to. That’s not the whole reason of course, but I’m of the opinion that it’s enough of a reason for how I choose to manage my business. I feel that’s not a good enough reason though, so I’ll elaborate slightly.

      I’m not sure if I made my point clear in the post or not, but I’m not opposed to signing NDA’s in general (and admitted as much that I still regularly sign them). I draw the line at signing them sight unseen; I don’t want to get into a legal agreement before any communications have occurred at all, and that is an ask that I get frequently. I don’t think that anyone should sign an agreement with an unknown party before having any idea as to what they want to discuss, or who they are. I wouldn’t want to accidentally agree to something that I’d later retract after learning of their needs.

      As to the other comments, the bracelet was from a charity event, and I’m sad that I lost it but would be wearing it if I still had it. I am in fact gay, but feel that a black shirt with white text doesn’t project that as well as it could. The t-shirt is from a WordPress conference, in line with what I do for a living, same for the stickers. I’ve actually got a few more on my new laptop. 🙂 https://twitter.com/davidwolfpaw/status/565978904398409728

      It’s been suggested that I also agree with you and delete or spam your comment, but I’m interested in starting open dialogues. I don’t know who you are, and your email doesn’t give any more insight. You know my full name, who I am and how to reach me. The comments made undeniably smack of personal attacks, and I’m intentionally keeping it easy to make them, and hope that you can do the same.

    2. Chris Edwards Avatar

      Roger, as a professional web developer, I started off with reading your post looking to understand where you were coming from. I could see your point of view on the matter, but then, you threw your creditability out the window when you began to attack the author of this post with childish insults. To be a professional, why does his t-shirt make any difference? Why does his personal preference on how his computer looks make a difference in his skill set and experience? Last time I checked, professionalism is about how you present yourself to clients and what you bring to the table. I am sure that david will dress the part when circumstances require it. He runs a successful company that continues to have customers that pay for his service.

      If we want to be childish, let’s talk about the lack of punctuation, capitalization and sentence structure of your comment “bashing” his professionalism.

      Oh by the way, at my agency, we have well over 400 clients, 7 figure revenues, and over 18 employees. I have stickers on my laptop and all of us wear t-shirts and shorts to work. Sorry your company does not support this. If you can improve your professionalism, maybe you can come work for a real tech company that will allow this.

    3. Andre Avatar

      Firstly, Roger, you sound like you have no common sense and have no intelligent or compelling argument in your comment. Your comment is irrelevant. You are just basically saying that ‘the reality of the matter’ is that you don’t think twice when presented with an NDA in fear you may jeopardize acquiring a gig, and that it is “limiting” otherwise. This show’s that you do not understand what this blog article actually is about. I would encourage you to first consider having more self-restraint, tuning up your primary school level reading comprehension/analytical thinking capabilities, and a use a little forethought before you spew out low level garbage.

      You’re comment is not worthy of anyones time on this blog. The fact that david is open and compassionate to accept your ridiculous comment baffles me.

      – The truth cannot hidden for long, it will always come to light. ~ Ancient Wisdom.

  2. Brian Swanick Avatar

    Yea, I’ve been asked to sign NDAs before anything was really talked about and I respectfully declined as well. I don’t work in VC, but it’s pretty common to have conflicting interests in just about any business.

    By signing any legally binding agreement, or simply agreeing to an exchange of services for money by email, I’ve assumed certain responsibilities and invested my time. Especially considering I have agreements with other vendors, why would I sign something to have an initial conversation? Am I talking to Obama? Am I on a secret mission?

    I haven’t heard of many instances where it has mattered one way or the other, but I wouldn’t waste my time reading it if we hadn’t gotten past first base.

    1. david Avatar
      david

      I agree, if it were a situation where signing an NDA without any prior knowledge could be beneficial (such as in the case of knowing the party suggesting it, or being genuinely intrigued), then I would change my stance. If the president came and said that he wanted to talk to me but I had to sign an NDA first, I’d be much more inclined to do so than if I receive an email from someone that I don’t know, have never heard of, and can’t find via cursory Google search.

  3. Chris Edwards Avatar

    I agree with your stance in most situations when it comes to NDAs. My reasons are slightly different as to why. I will keep it short.

    When someone comes to me and says, “Hey Chris, I have a great idea that I need your help with, but, I will not tell you what it is until you sign this paper”, I have to wonder, what if I already had this idea. What if this is a very broad idea. What if I am already working on something that utilizes a function that your idea contains. Will you come and sue me? I do not know anything about you or your idea, why would I want to sign something limiting me from ever doing anything that comes out of your mouth after that moment?

    I agree with Brian. There are ways to present your idea without giving away the secret sauce. Tell me more about it, and if I am interested, then we can put together an NDA together that will protect you and only limit me on the secret parts of your concept.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

To respond on your own website, enter the URL of your response which should contain a link to this post’s permalink URL. Your response will then appear (possibly after moderation) on this page. Want to update or remove your response? Update or delete your post and re-enter your post’s URL again. (Find out more about Webmentions.)

🌙 ☀️