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Is it appropriate for a start-up to ask consultants to sign an NDA?

Upon thinking about it, I think it is okay if two conditions are met -- 1) it is limited to IP assignment and 2) I am being paid. What do you think? Are there any rules of thumb?
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categorytechnology
typeadvice
tynamite
tynamite's avatar Yes it is appropriate. I've done it.

The problem with startups is that they are relatively cheap to produce compared to other businesses and products like an newsagents or Coke Zero. Let's remember that a startup is a business. That is a problem because it's very easy for me to copy your, their or anyone's website idea by coding it, or stealing its ideas.

I would compare it to living in a glass house building a gold and tanzanite machine, and loads of people watching you from the outside, prying to steal it or copy how you make it. You haven't made any money yet, but the glass house makes it likely that you won't, and you can't move out of it.

At least with an newsagents I need bricks and mortar, and for Coke Zero I need to buy ingredients in bulk from other countries and have a factory going. With a startup, I could run one in my bedroom. There has to be something that protects up and coming startups from having their startup idea that they strongly believe in, from being stolen by other companies, probably with a higher user base they can leverage (Zynga/Google).

The startup world is very competitive and is also cut throat at times. To ask consultants to sign an NDA is very appropriate. If you don't want to sign it, you're the wrong person for the job. You won't be dedicated to your job and having the business take off. It's better they find someone else who is dedicated before they go cash flow positive.

People say it's not about the idea, it's about the execution.
That is wrong! It's all about the marketing. With two competing businesses, the one with the better marketing plan will always win. Design and customer service also counts as marketing (word of mouth).

The startup in question has their idea, and their execution is not important. They need your help to protect their marketing. And you can help do that by signing an NDA. If they never made people do that, their idea would be under common public display, and they would very likely perish thanks to other [sometimes established] companies who can provide more effective marketing.
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