Category Archives: Sales Profession

Are you feeding the Sales Beast?

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Are you feeding the beasts?If you want to keep a beast happy – feed him.

If you want to keep your salespeople happy – feed them too. But feed them with good leads and qualified prospects.

All too often, salespeople are told to find their own leads and prospects. There is nothing wrong with that. When times are slow, doing some research on the side is OK. But if your salespeople are spending too much prospecting, that means they are spending too little time selling.

Based on numerous studies, the average salesperson only spends about 30 percent of his time actually selling. The rest of the time is spent on training, administrative work, account management, and other tasks.

This is why it’s so important to have a marketing team on board to help your sales team. Using tools like Data.com (formerly Jigsaw), DiscoverOrg, Zoominfo, and others can help your sales team generate more business.

What’s worse than a bad salesperson? A bored one.  Why?  Because bored salespeople who are good in their profession start seeking other opportunities. And you don’t want that to happen.

So always feed the sales beast.

Should Salespeople use Glassdoor?

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Should you use Glassdoor for job hunting?You are a recent college graduate and you’re trying to find your first sales job.

You got laid off from your last sales job, and you’re now scrambling to find new work.

You hate your job, so you’re now seeking a better sales position.

Where do you go for help? You could go to the usual suspects, e.g., friends, former co-workers, relatives, job recruiters, contacts, etc.

However, one source you may want to consider is Glassdoor.

What is Glassdoor?

For a job hunter, it could mean the difference between landing that dream job you always wanted and avoiding the job from hell.

According to its website, Glassdoor “holds a growing database of more than 8 million company reviews, CEO approval ratings, salary reports, interview reviews and questions, benefits reviews, office photos and more.”

What makes Glassdoor unique is that you get an insider’s view to find out more about a company’s culture and office politics. By looking through the glass door (get it?) you can read anonymous reviews posted by current and former employees. Among other things, reviewers can make recommendations on whether you should apply to a company, and offer star ratings as you see on Amazon or Netflix. Glassdoor also goes a step further and allows you to approve or disapprove of a CEO.

But you are not just reading reviews. You are also getting information on salaries for various positions. In many cases, you also have access to interview questions and hiring procedures, e.g., how many times were you interviewed, did you do phone and on-site interviews, or both, what was your overall experience like, etc.

But can you trust the reviews?

When job hunting, you always have to read between the lines and trust your gut.

Here is how you can interpret reviews posted on Glassdoor –

1). The number of reviews posted –  If there are only a handful of reviews, it’s going to be very difficult to understand the company’s culture or if you are a good fit or not. On the other hand, if you have let’s say  7 or more recent reviews, that could give you some idea of what type of company you are applying to.

2). The timelines of the reviews – if you see an influx of very positive reviews posted within a short period of time mixed in with a lot of negative reviews, that’s usually a sign that the employer is asking his employees to post good reviews to counter the bad ones. In that case, you really have to read between the lines. I’ve actually worked at companies where employers asked people to post encouraging reviews in an effort to attract more and better job applicants. In other cases, outgoing employees were asked to post good reviews before they left. Is that fair? Well, it depends. If current employees are truly happy with their jobs and the company, they shouldn’t have any misgivings about posting upbeat reviews. But if they are unhappy and feel coercive, that could be a problem.

3). Employer Engagement – Believe it or not, employers can actually participate for free on Glassdoor. For example, they can respond to reviews, offer updates about the company, and obtain a demographic snapshot of visitors to narrow down recruiting efforts. (Glassdoor also offers fee-based packages for employers, including advertising and enhanced profiles).

I believe the more engaged an employer is with Glassdoor, the more likely they are taking the reviews seriously and they want to improve their company. Most companies do want to hire the best people they can. If they suddenly see an onslaught of damaging comments, they know that could discourage good job candidates from applying to their company.

writing reviews on Glassdoor4). Age of reviews – I believe that the older the reviews, the less helpful they are going to be for job hunters. Why? With the passage of time, company cultures, policies and politics change. Sure, maybe 4 years ago there was high turnover in the sales department, but now under new management, the exits have now gone down to a trickle. While the occasional negative review may pop up, if you are reading mostly optimistic comments, that’s a good sign the sales department or company is in good shape.

5). Motive of the reviewers – maybe it’s me, but I believe the more people write negative reviews than positive ones. Sometimes destructive reviews are written by disgruntled former employees who have an ax to grind. Maybe they were fired or laid off, and writing negative posts is their way of “getting back at the man.”

However, what may seem bad to one employee may be good to another one. For example, I’ve read reviews where some employees complained about a company’s new open space office policy. (Please see my post on “Open Space Offices – Good or Bad Idea?”) They hate the arrangement because of the noise and lack of privacy. However, some employees may not care because for them an open space office provides a more collaborative and transparent environment. I read reviews where some employees have complained about using security cards to enter each floor of a building. But other employees like the arrangement because, in a post 9/11 world, they want extra protection from terrorists or gunslinging mentally ill people.

6). Length of the reviews – short reviews are really hard to interpret. Simply reading a review that says in effect “the place sucks, don’t work here” with few examples isn’t very helpful. The longer reviews that offer deeper insight and try to balance the pros and cons of a workplace can provide a more accurate picture of you. Also, long reviews are written by people who really care about their jobs and want to see real change. They are hoping their employers notice their comments and will adapt.

I actually know firsthand of employers who have changed their policies and hiring practices because of reviews posted on Glassdoor. For example, one employer was shocked to find that job applicants were upset by the amateurish ways interviews were being conducted. During an interview, the hiring manager would be openly reading the job candidate’s Facebook profile and asking ridiculous questions. The company quickly posted that the practices had changed. They even published the phone number of the HR department and encouraged anyone to call if they had any questions.

However, not all companies get the message. For example, one Washington, D.C. based company is consistently criticized in Glassdoor for canceling and then rescheduling job interviews at the last minute. I guess the HR director isn’t reading Glassdoor that often to change the bad practice or doesn’t care.

7). Consistency – with some reviews, you may see a pattern of good or bad comments. For example, if you keep reading about high turnover in the sales department, or a lack of direction from upper management throughout several reviews, then that’s a sign the company isn’t making progress. For example, several people at one company complained that the owners were socially awkward and inept, and thus were hard to work with.  On the other hand, several people at another company commented on the owner’s open-door policy, and his willingness to listen to advice.

On a personal note, I’ve used Glassdoor when applying for new jobs. I have found some of the reviews to be completely accurate, while others fell off the mark.

Glassdoor, like any job hunting tool, is a guide. While Glassdoor can give you a peek of what is going on behind a company’s closed doors, in the end, you still have to do some things the old fashion way – going on interviews, attending networking events, finding contacts within a company, working with recruiters, and doing basic research on Google.

For more information about Glassdoor and job hunting, please read the following articles –

“14 Little-Known Tricks to help you Land your Dream Job using Glassdoor,” by Julie Bort

“How Glassdoor’s Reviews Help you Find your Dream Job,” by Sarah K. White

Note: If you like my post, please check out my book – Advice for New Salespeople: Tips to Help your Sales Career.

Recommend: DC Tech Meetup

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DC Tech MeetupYou are new to the Washington, D.C. metropolitan area and you would like to learn more about the start-up or tech community.

You are a bored salesperson who wants to work for a more innovative company than your current job.

You are a job seeker trying to find challenging work with a start-up or tech company.

You are a business owner who would like to gain free publicity about your company.

You are a hiring manager seeking new employees.

You are an entrepreneur trying to find ideas to create a new company.

Or, you are a patron of the Martin Luther King Jr. Memorial Library who took the wrong turn and found yourself listening to rapid-fire presentations. (Just kidding).

Seriously, if you fall in any one of the above categories, attending or speaking at the DC Tech Meetup may be your solution to your problems.

What is the DC Tech Meetup?

From the website –

“The DC Tech Meetup convenes technologists, entrepreneurs, investors, and the broader innovation community regularly to learn and share. Each month, 400+ innovators gather to see demos, launch products and meet their future co-founders, partners, and funders.”

It is also one of the largest Meetups in the D.C. area, listing more than 16,700 members, Founded in 2011, the meetings are usually held once a month or so at the Martin Luther King Jr. Library (convenient to the Gallery Place Metro). (Locations may change, so please check the D.C. Meetup page).

UPDATE: Starting in March 2017, DC Tech Meetup is now meeting at The Howard Theatre on 620 T Street Northwest, Washington, DC. It’s only a couple of months from the Shaw-Howard University Metro Station.

(I’ve been a member for three years and try to attend on a regular basis).

To date, there have been 53 Meetups.

While the agenda has changed over the years, the meetings normally have 6 to 10 companies that give about 5-minute demos, with a Q&A session after each presentation. Sometimes a sponsor will also speak or a special guest will give a short presentation. Each meeting also begins with “10 Things You Need to Know about #DCTech” (which I enjoy listening to).

The major theme of each Meetup varies. Recent examples include “Women in Tech,” “Tech Inclusion,” “Virtual & Augmented Reality,” and “College Demos.”

Why should you attend and how can you benefit?

Let’s break this down from the attendee and speaker point of view.

start-up companies in Washington, D.C.Here are some tips for being a good Attendee –

Whether you are new or a veteran to the D.C. start-up or tech scene, this Meetup is a great way to network. Don’t be shy. One of the best ways of networking at a large event like this is simply sitting next to someone, introduce yourself and shake hands. The last thing you want to do is sit by yourself staring at your Smartphone pretending that you’re too busy to speak to anyone. (Sorry, your secret is out). Really, no one is going to bite. This is a friendly crowd who share the same interests and passions you do. So why not talk?

Here are some tips on how to be a good attendee –

1). Come early. The seats do fill up quickly.

2). Walk up and introduce yourself to one or two of the organizers. Sure, they may be busy getting things set-up, but shaking hands and thanking them for organizing this event will only take a minute. It takes a lot of time and effort to organize these events, so I’m sure they appreciate you thanking them.

From the website, here are the current organizers – DJ Saul (@DarienJay100), Brandon T. Luong (@BrandonTLuong),  Christopher Beene (@GoForTopherB), Jessica Ryan (@SirJesstheBrave),  Shana Glenzer (@ShanaGlenzer), and Zvi Band (@skeevis).

3). Sit near the front. You can see the demos better and you will have an easier time being selected if you have a question. (However, the organizers make a good effort of selecting people from the back of the room).

4). Bring business cards. You never know if you are going to meet someone who can help your career or offer you good advice.

5). Do your homework, especially if you are a job seeker. If you notice a company or two on the speaker list, check out their websites and LinkedIn profiles. Write down a couple of questions you may want to ask during the event. If the company appeals to you, try to meet with some of the employees at a local bar after the event (These days the after-hour event is usually at Brick & Mortar on 918 F Street NW). You can also meet the employees in the back of the room after the presentations are done.

6). Be prepared to give your own pitch. Yes, you can give your own pitch during Open Mic – but for only 20 seconds. So plan ahead for what you are going to say.  The announcements include seeking work, available job openings, new websites or blogs to read, or upcoming meetings or events to attend.

7). Networking, like learning, should be a lifetime commitment. While attending a recent Tech Meetup, I met four students who were taking courses from General Assembly. Their instructor required them to attend one DC Tech Meetup to learn more about the tech community. Only one? Look, if you want to stay current or just meet new people, attending only one Meetup isn’t going to cut it. Sure, you may think you have a secure job and several connections. But then one day your company gets acquired, or your manager is fired, or you go through the classic department reorg, and then suddenly you’re out of the street. Don’t make attending networking events a one time deal. Make it a lifetime commitment. Because the next person you meet could be your lifeline to a new job or a better opportunity.

For more advice about networking at events, please check out these links –

“Meetup Tips That’ll Have you Networking like an Expert” by Cori Morris

“Use Meetup to Start a Networking Group, Even if You’re Unemployed” by Alan Henry

D.C. TechHere are some tips about being a good Speaker –

1). Know the ground rules and follow them. For example, each presentation is no more than five (5) minutes long.

2). Dress to impress. Yes, I know that in the start-up and tech world, the casual or grunge look is commonplace, but when giving a presentation before your peers, you may want to dress more professionally. Maybe it’s me, but I tend to listen more acutely when someone is sharply dressed. In my mind, they are signaling that they want to be taken seriously. (BTW, occasionally investors do sit in the audience. You may have a great product or service, but if you looked like you just rolled out of bed, your presentation may fall on deaf ears).

If you don’t have the money to buy good threads, invest in T-shirts with your company’s name and logo. This will keep your company’s name upfront while speaking, and give an esprit de corps vibe about your company.

(For example, all the employees from TrackMaven wore their company T-shirts during the DC Tech Meetup #26: Hacks, Code and Creative. They all stood out from the rest of the crowd. At one point, they cheered their one of their employees while he was giving a demo).

3). Know your audience. Most people sitting in the audience have had a long day. Working 50 plus hours a week or fighting long commutes, they are tired but still willing to take time from their evenings to listen to you. So please, don’t be boring. It’s not about you, it’s about them. No one wants to hear war stories of you toiling away for hours in your parent’s basement, trying to acquire investors or avoiding bill collectors. The best demos I’ve seen are sprinkled with humor, offering lively visual presentations, and just enough information wanting people to learn more. The two most recent good examples of presentations that stick out in my mind were conducted by Carey Anne Nadeau with Open Data Nation and Kate Glantz with Heartful.ly. (They both spoke at the DC Tech Meetup #48: Women in Tech Edition).

So if you love what you are doing, make sure you share that passion with your audience.

4). If you are having difficulty coming up with a good short pitch or demo, try to answer the following questions –

Why did you start your company?

What pain points or problems are you trying to solve?

Who are your target customers?

What is your business model?

How does your service or product work?

Why should anyone care?

5). Be prepared to answer some tough questions. While everyone is civil at the Tech Meetup, I’ve heard some challenging questions in the past. Remember – your audience may include investors, or your next great employee waiting to be hired by you. If you don’t feel you can handle difficult questions, make sure you have a back-up on the stage to help you.

For example, I once attended a workshop where Senator John McCain (R-AZ) was speaking. (This was long before he ran for president). When faced with a difficult question, he asked one of his aides, who he called “his brains”, to step forward and answer it for him.

No one expects you to know all the answers. So having a little help on the stage doesn’t hurt.

6). Don’t hesitate to announce job openings at your company. Save that announcement at the end of your presentation, but it doesn’t hurt to let everyone know you are hiring. Remember – if someone is a regular attendee at the Tech Meetup, that’s a person who takes the industry seriously and maybe a good fit for your company.

7). If you are unsure how to give a good presentation, start by becoming a regular attendee of Tech Meetup. Believe me, after going to a few events, you will pick up pointers on what’s effective or what’s not when speaking. I’ve gone to enough Tech Meetups and start-up pitches in my career that I can predict within the first two (2) or three (3) minutes of a presentation which companies have a good idea and which ones need to go back to the drawing board.

8). Give away free samples or swag. If you have free samples or swag to give away, announce it at the end of your presentation. Invite people to stop by after the end of all the presentations to pick up what you have to offer. For example, GateKeeper gave away free their security lock on a first-come, first-serve basis after the DC Tech Meetup # 36: Demos, Demos, Demos. Or better yet, set up a small display table of your free samples, swag, or marketing literature. (However, make sure you get permission from the organizers before you do this. Display tables were set up during the DC Tech Meetup #43: Virtual & Augmented Reality Edition, but that may have been an exception to the rule).

Or, you may want to follow Pendo’s example. As a sponsor, besides giving a short presentation, the company also gave away free Georgetown cupcakes at the end of the DC Tech Meetup #48: Women in Tech Edition.

As a speaker, you are following in some big footsteps. Previous presenters have included Framebridge, Aquicore, Encore Alert (which was recently acquired by Meltwater), FiscalNote, Social Radar, Social Tables, and Quorum.

For more advice about speaking, please check out these links –

“7 Tips for Giving the Best Tech Talks at Meetups” by Katie Richard

“Why You Should Speak at Meetups and Conferences” by Michał Śliwoń

So what do you think? If you feel that attending or speaking at the DC Tech Meetup is worth your time, please go. You never know what you can learn or who you will meet that could help your career.

Note: If you like my post, please read my book – Advice for New Salespeople: Tips to Help your Sales Career.

The top photo is from Gil C / Shutterstock.com

Recommend: Enterprise Sales Meetup Events

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networking eventsLet’s face it. With some professional Meetup events, you just don’t know if you’re wasting your time or not. With busy schedules and tough commutes, attending an evening event can require a major commitment on your part. After working 50 plus hours a week making sales calls, trying to meet your quota and handling customer problems, hauling your ass to attend a professional event is a lot to ask for. Sometimes the speakers turn out to be good and other times, well not so good. Then you kick yourself for wasting two hours attending an event when you could have been at home relaxing.

And don’t you just love those paid events where the speaker or speakers fall flat, and you are left wondering how you can get a refund.

If you are like me, you are constantly receiving email invites asking you to attend networking events. The problem we all face – what are the good events to attend?

Well, I have some good news for you. I’ve recently discovered a series of great events that I believe all salespeople should attend – it’s called the “Enterprise Sales Meetup.” (And yes, the events are free).

Based in New York, the meetup events are held in different cities, usually on a monthly basis. The most recent events have occurred in New York City, Boston, Brooklyn, Washington, D.C., Denver and San Francisco. I would encourage you to check out your local Meet-up calendar and see if one of the events will be in your city soon.

Enterprise Sales Meet-upThe events not only offer good networking opportunities, but you get to listen to some real sales pros. For example, I attended “Scaling High-Velocity Sales Teams” with Brian Zang in D.C. a few weeks ago. Mr. Zang, CRO of Ringio, participated in a question and answer session with Mark Birch, the Founder & Co-Organizer of Enterprise Sales Meetups. Topics range to how do you hire and manage salespeople, the challenges that all sales teams face, and tips to ramp up your sales. After the session, audience members were encouraged to ask questions. (I wanted to stay after the event was over and network more, but I had a long commute and an early scheduled sales call the next day).

Enterprise Sales Meetups have hosted many other sales professionals, including Trish Bertuzzi of the Bridge Group, Marc Jacobs, VP of Sales at Greenhouse, and Chad Burmeister, author of Sales Hack and Senior Director of Sales Development at RingCentral.

The Enterprise Sales Meetup site also includes a good selection of blogs, all written by Mr. Birch. His blog posts offer sound advice on a wide range of topics, including “Seven Tips for Cold Email Effectiveness, How to Reach Anyone,” and “The Perfect Sales Pitch.” His posts are on target and I would encourage you to regularly read them. (I have added a link to his blogs in my Other Blogs section for you to read).

Selling isn’t a lonely profession. There are others like you who are struggling to do their best and achieve their goals. So please, if an Enterprise Sales Meetup event is held in your city, I would encourage you to attend. You will not be disappointed.

Note: If you like my post, please check out my book – Advice for New Salespeople: Tips to Help your Sales Career.

Should you sign a Non-Compete Agreement? Part 2

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In my previous post, I discussed what a non-compete agreement is. In this post, I will discuss my experiences with those agreements.

I’ve had several experiences in signing non-compete agreements. The first time I was asked to sign one was when I worked at a durable medical equipment company. What makes my case so unusual is that I was asked to sign the agreement after I had been employed with the company for about three years. This was done because a few weeks earlier, a senior salesperson had left our company to work for a competitor. He allegedly stole a hard copy of our customer list. There was no proof he took the document. However, based on that experience, our employer required each salesperson to sign the non-compete agreement even though most of us had been with the company for several years.

non-compete agreement for salespeopleThere was no formal announcement in advance that the entire sales staff would be required to sign this document. Instead, each of us met privately in an office with the owner, his wife and the sales manager. The non-compete agreement was presented to each salesperson. We read it, asked questions and if we agreed to the terms, we signed it. In exchange, we received financial compensation based on the number of years each of us had worked at the company. (Employees who are belatedly asked to sign a non-compete agreement are normally offered something of financial value, like a bonus or a raise).

Being naïve about such agreements, I immediately read and signed it because I wanted the money. However, some of my colleagues did not sign it so quickly. Some took copies to review but were given a specific deadline to make a decision. One of my friends had the foresight to have his attorney review the document. His attorney told him to sign it because the agreement was so vague and “full of holes” that it could not stand up in court. While that news gave me some relief, I now realize I should have been more cautious before signing the agreement. Like my friend, I should have sought legal advice.

A couple of years later, our company was sold to a large competitor. It was soon announced that the entire sales team would probably be laid off within a year or so after the acquisition. However, we were not required to sign a non-compete agreement before joining our new employer. About a year later, shortly before we were to be laid off, the HR department asked each salesperson to sign a non-compete agreement. This time, the entire sales team refused. Since we knew we were going to be laid off, it didn’t make sense for us to sign. Some of us (including me) were seriously considering working for a small competitor after we left, so we didn’t want to ruin our chances for future employment.

As we expected, the HR department backed down and did not force us to sign, since by that point it really had no leverage over us.

I did, in fact, go to work for a small competitor after being laid off. A few weeks after taking that job, I received a nasty letter from a lawyer representing the company that had bought out my previous employer. The letter stated that I was in violation of a non-compete agreement and that legal action would take place unless I immediately quit my new job. I called the attorney and argued that since the agreement was between my old employer and not the new owner (his client,) the agreement was not binding on me. Naturally, he argued differently. I stood my ground and refused to quit my new job. As I suspected, my old employer did not take legal action against me. I believe they didn’t sue me because they thought I would have little impact on their sales. In addition, nothing in the agreement stated that I must comply with the terms if my old employer was bought out or merged with another company.

I found out later that some employers will use threatening legal letters to try to intimidate and scare their old employees who work for competitors, but never follow through with any action. Why? Partly because of the legal expense involved are too high, or because the employer believes you will not have a major negative impact on his business. These employers are playing a game of chicken. They hope a threatening letter is enough to scare you away from a competitor. If you call their bluff, you may win. However, my advice is that if you receive a threatening letter from a previous employer, always see a lawyer.

The third time I was asked to sign a non-compete agreement was when my division at a mid-size publishing company was sold to a large competitor. Unlike the prior buy-out, I experienced, this time my new employer requested that I and everyone on the staff sign the non-compete agreement before being hired. The agreement listed several competitors we were not allowed to work for until a year after we had left the company. I signed the agreement because I had no plans to work for a competitor.

non-compete agreement for salespeopleWhile that agreement was better than the one I signed with the durable medical company, it still did not completely protect my employer. For example, two editors quit and went to work for a competitor that was not listed in the agreement. Three more editors quit and took jobs with a competitor had not been created before the buy-out.

Since then, I have signed two more non-compete agreements before formally being hired by a new employer. (In one rare case, I was actually asked to sign a non-compete agreement before being interviewed. But that agreement only applied to anything that my potential employer discussed with me during our interview. In return, my potential employer signed an agreement promising that he would not disclose that he interviewed me. This agreement was to protect me in case my current employer was snooping around to find out if I was interviewing for a new job).

From a sales point of view, are non-compete agreements fair? In my opinion, it depends on several factors. If you specialize in selling certain products and services, then you should be allowed to continue selling those products and services to other companies. This is especially true if you get laid off, fired or move away. While I understand the employer’s point of view about protecting his business, we all have to make a living. However, I’m strongly opposed to stealing your old employer’s trade secrets, customer lists or anything else that is considered proprietary. It’s just plain unethical and wrong. And if you have done your due diligence in advance, your employer’s competitor will have good products for you to sell, and enough resources to help you.

From my personal experience, I have heard of employers threatening legal action against a former employer, but I was not privy to the outcome or if they followed through on their threats.

If you do decide to work for a competitor even after signing a non-compete agreement, I strongly urge you to seek legal advice first. This could save you a lot of time, money and headache down the road. If your old employer suspects you have stolen trade secrets or client lists, he may sue not only you but your new employer as well.

So if you are confronted with the prospect of signing a non-compete agreement, always seek legal advice. If you feel uncomfortable signing the agreement, and you think you can find a job somewhere else without signing one, then go for it.

 

Should you sign a Non-Compete Agreement? Part 1

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More companies than ever are requiring salespeople and other employees to sign non-compete agreements. Given the high turnover in many sales departments, and determination of competitors to steal good employees, this really shouldn’t come as a surprise. In addition, with so many mergers and acquisitions going on these days, employers are worried that salespeople are going to jump ship and steal their customer/prospect lists, confidential marketing plans, and other proprietary information.

signing a non-compete agreementBut first, what is a non-compete agreement? It is a contract between you and your employer. The agreement states that you will not work for a competitor within a certain length of time after you leave your employment. The time period can range anywhere from a few months to two years or longer, depending on your position and the type of company or industry you work in.

The agreement will probably include a clause that you cannot share client lists, trade secrets or other information that your employer considers to be confidential or proprietary. In some cases, the agreement may state that even if you are allowed to work for a competitor, you cannot solicit sales from your former customers or even from any customers of your old employer.

The agreement can be anywhere from a few paragraphs to several pages long.

The agreement’s purpose is to protect your employer from losing business to a competitor. From an employer’s point of view, he is investing time and money in you to sell his products and services. If you jump ship to join a competitor, not only is he losing you as an employee, but you could potentially bring his customers and trade secrets to his rival, and thus hurt his business.

Non-compete agreements are based on state law and vary from state to state. Some states don’t enforce non-compete agreements. Some courts may not enforce them, either.

blue pencil lawOther states may have “blue pencil” laws that give judges the authority to modify a non-compete agreement. For example, if an agreement states you cannot work for a competitor for three years, a judge may consider that time period unreasonable and reduce it to six months. Another example is that if the agreement states you cannot work in a specific industry, let’s say pharmaceuticals, a judge may find that is too broad and restrictive on your ability to find work. If an employer had specifically named competitors in the agreement before you signed it, you might have a more difficult time working with a specific competitor.

There is a lot of controversy about how legally binding non-compete agreements really are. I’m not an attorney. My suggestion is that if you are asked to sign an agreement, you should seek legal advice. However, if you delay in signing the agreement, your potential employer may become suspicious of your true intentions to work for him, and may withdraw your job offer. Still, you should be prepared to be asked to sign such an agreement if you decide to accept a job offer.

If you are lucky, you will receive the non-compete agreement along with other paperwork to complete before officially coming on board. If you don’t receive any paperwork in advance, I suggest that you contact your new employer’s HR department and request it. If they ask why you want the paperwork in advance, tell them that you want to save time by completing as much of it as possible before you start your new job. In most cases, the HR department will comply with your request and email the material to you. If you get a non-compete agreement in advance of starting your new job, which should give you enough time to have an attorney review the document and offer his advice.

To learn more about non-compete agreements in your state, please check out Beck Reed Riden (BRR)’s 50 State Non-compete Chart. It was posted on August 9, 2015

Heather Bussing also wrote an interesting article on “Is Your Non-Compete Agreement Enforceable?”

In my next post, I will discuss some of my personal experiences with non-compete agreements.

Note: Like my post? Please check out my book – Advice for New Salespeople: Tips to Help your Sales Career.