Business Ethics?

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  • Mel

    Well, I've had this issues raising for a while now. I rent my office in a loft from a Internet Provider/CMS+Web developer company (which I will refer to as IT Company). They contract all interface designs out to me. Therefore, a fair share of my income is thanks to them. Being strictly an IT related company, many of their clients need additional design services like brochures, cards, etc. This is where the issue begins.

    Not having that much experience in business, the whole business ethics and standard practices is a bit forein to me. THEIR clients in most cases know it's outsourced to me, and often I'm in direct contact with the client. In the event that one of them wants other design services from me, is it usually seen as unethical to work directly with the client (at their request) without going through the IT Company? Is this seen as stealing a client list... The IT Company sees it as an account THEY worked to get, sold my talent to them, therefore it should always go through them if any design work is needed (which I totally understandable). I'm alright with giving them referal fees on projects, but is it ethical of THEM to get me to go through them, even when they have no part in the actually service I provide (eg. print work)?

    Basically, we are not competitors, since we offer different services. I also understand that a client list is the most valuable thing to a company. But I feel like I'm helping build their company, their name, their credibility, rather then my own.

    Am I being played here, or is this a legit and standard business practice? Some say there are no rules when it comes to business, but I believe you can do business in a ruthless way or in a respectful ethical way. It's up to you to pick.

    Educated feedback on this issue would be greatly appreciated! Thanks!

  • rabattski0

    sounds normal / sane / no big deal really.

    you actually want it like they want it because if there is an issue then they have to deal with it and not you. know what i mean?

  • rabattski0

    there's also this saying: don't bite the hand that feeds you. you know, interpret oursourced as being employed in a way. ofcourse only for the clients they get you.

  • whoohaa0

    yeah and don't shit where you eat

    and don't let the cunt leak in all directions

  • paddywop0

    I think that it should be ok to take additional design work directly from the client. If theres no IT involved then the company have no reason to be involved. The client is not eclusive to them.

    But if they give you alot of work you obviously want to stay on their good side.

    The point being, tread nicely and politely, but the IT company should not be taking an 'introduction' fee everytime these guys want some design, as i assume you're not contracted as a full time employee of theirs.

    Of course, this is just my opinion.

    Good luck, let us know what happens incase i ever get stuck in that situationtoo.

  • Pedrofski0

    Business ethics. Intresting concept. Hypothetically speaking, of course.

  • person0

    I would advise that you work this out with the IT Company as soon as possible. Write up an Agreement that you both are happy with and make sure it covers new referrals, existing client work, and what happens when and if you leave. Always assume the worst possible scenario because business is not "nice". Unfortunately people that go into business thinking they can be nice and ethical will quickly discover that money, power, and ego is everywhere. Get it in writing and it forces everyone to play nice.

  • Mimio0

    I'd say to the client that they should pursue a direct relationship with you. Work out a finders fee with the IT comapny.

  • DonDigital0

    Just go and talk to the IT Company...sounds like you have a good relationship and they would appreciate the openess/honesty.

    BTW, i work at said IT Company.

    ;-)

    That being said, Ad agencies around the world survive by stealing clients...thats all they do.

  • Mel0

    Yes, well I am good friends with the CEO, going on 2 years. We've talked about the issue obviously, but he said that if I wasn't willing to cooperate that he'd have to have me sign a non-compete agreement. But what in the hell would that do anyways!? We don't sell the same service anyways.

    I just want to make sure I'm not being used by some money hungry CEO.

    DonDigital: you work with Ian?

  • Mel0

    Yes, well I am good friends with the CEO, going on 2 years. We've talked about the issue obviously, but he said that if I wasn't willing to cooperate that he'd have to have me sign a non-compete agreement. But what in the hell would that do anyways!? We don't sell the same service anyways.

    I just want to make sure I'm not being used by some money hungry CEO.

    DonDigital: you work with Ian?

  • person0

    good friends with the CEO, going on 2 years.

    He said if I wasn't willing to cooperate that he'd have to have me sign a non-compete agreement.

    Do those two statements go together?

    www.findlaw.com is an excellent resource for pre-written agreements of all kinds. You just need to do a little editing in word.

    Trust me, he will respect you more if you put an agreement in front of him and come to terms and it will improve your business relationship.

    The problem with most artists and designers is that they are poor business people and business people know that so they take advantage.

    You already acknowledged that you are bringing value to their IT business so make sure you get paid and don't let them take advantage.

    Designers and artists like to create and give.

    Business People like to take and hold. mine, mine, mine like Daffy Duck in the Oyster holding on to the Pearl.

  • SteveJobs0

    would he have you do the same if you owned a lawn mowing company?

    it could get harry, though, if the work you do is slightly related to the services you provide to the client through your IT co.