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Message
Consulting Gig takes a Weird Turn
Posted on 6/13/17 at 3:45 pm
Posted on 6/13/17 at 3:45 pm
A couple years ago, I was hired as am independent consultant for a small company that provides Service A. I am a SME in Service A and have helped increase this company's bottom line substantially over the past 20 months or so.
Toward the end of the 2016, I brought up Service B to the company. Service B is related to Service A, but its a distant cousin. I offered my expertise and contacts on Service B and we agreed to split any profit that this brings to the company evenly, as it is not the core business.
Yesterday, the company called me and informed me that while they would continue to use my Service A expertise, they wanted to thank me for introducing me to Service B and they felt like they had learned enough to go out on their own with it. I spoke to a contact that I introduced to them and have figured out that they went behind my back and set some things up.
Again, Service B was not part of the plan, and has only constituted about 15% of my total income from this company (although it had potential to be 40% or more). I'm not one to step over dollars to pick up nickels but I am a bit taken aback of how this was handled. Should I be?
Toward the end of the 2016, I brought up Service B to the company. Service B is related to Service A, but its a distant cousin. I offered my expertise and contacts on Service B and we agreed to split any profit that this brings to the company evenly, as it is not the core business.
Yesterday, the company called me and informed me that while they would continue to use my Service A expertise, they wanted to thank me for introducing me to Service B and they felt like they had learned enough to go out on their own with it. I spoke to a contact that I introduced to them and have figured out that they went behind my back and set some things up.
Again, Service B was not part of the plan, and has only constituted about 15% of my total income from this company (although it had potential to be 40% or more). I'm not one to step over dollars to pick up nickels but I am a bit taken aback of how this was handled. Should I be?
6
Posted on 6/13/17 at 3:53 pm to anc
Imagine if you went behind their back to secure work solely for yourself (and the $$) outside of the original agreement and they found out about it.
They would fire you on the spot.
If the agreement isn't documented, you have two options:
1. Find another employer.
2. If you can't, you have to smile and take it up the arse.
They would fire you on the spot.
If the agreement isn't documented, you have two options:
1. Find another employer.
2. If you can't, you have to smile and take it up the arse.
This post was edited on 6/13/17 at 3:56 pm
Posted on 6/13/17 at 4:00 pm to LSUAlum2001
quote:
1. Find another employer.
2. If you can't, you have to smile and take it up the arse.
I'm a professor - this is not my core employment. Its really a side practice of sorts. And Service B was never part of the agreement.
But thanks for the feedback. I do kind of feel like I am taking it up the arse on this one. But again, just ~15% of my income from company over past 6 months.
Posted on 6/13/17 at 4:10 pm to anc
~15% is a lot of money
Posted on 6/13/17 at 4:11 pm to anc
I look at it as a negotiation. If not for you, they would have never known or profited from Service B so there should be some level of compensation for that.
Maybe ask for a 1-time finders fee...or increase your current rates as you have successfully shown you bring more than just the original Service A to your client. Since the client now has a track record, if Service C would come along you may want to mitigate your risk of not being compensated appropriately.
Maybe ask for a 1-time finders fee...or increase your current rates as you have successfully shown you bring more than just the original Service A to your client. Since the client now has a track record, if Service C would come along you may want to mitigate your risk of not being compensated appropriately.
Posted on 6/13/17 at 4:18 pm to anc
You got mind raped. Happens to contractors all the time. Your options are limited. Next time don't offer expertise they aren't asking for. It is a delicate line between trying to expand the billable services and getting screwed over.
Posted on 6/13/17 at 5:26 pm to anc
There is nothing "weird" about a company doing everything it can to maximize it's profits, including acting unethically as it clearly is doing here.
That's just where we are as a society. Companies have no loyalty to employees, what makes you think the are going to have any loyalty to an independent contractor?
I know this is not your main job, but two can play this game. You can take Service B to the marketplace and compete with them if you want, but be prepared to lose out your work with Service A.
If you ever go down this road again, get it documented in writing, and ask for some sort of residual / trails / royalty fee.
That's just where we are as a society. Companies have no loyalty to employees, what makes you think the are going to have any loyalty to an independent contractor?
I know this is not your main job, but two can play this game. You can take Service B to the marketplace and compete with them if you want, but be prepared to lose out your work with Service A.
If you ever go down this road again, get it documented in writing, and ask for some sort of residual / trails / royalty fee.
Posted on 6/13/17 at 7:27 pm to anc
quote:
I brought up Service B to the company. Service B is related to Service A, but its a distant cousin. I offered my expertise and contacts on Service B and we agreed to split any profit that this brings to the company evenly, as it is not the core business.
Was this documented?
I assume you have some sort of contract for "Service A", so why would this not be contracted for "Service B"? And even if it was, if the company chooses to not renew the contract for A or B, they are still free to pursue business in both A and B.
From the comapny's perspective, your services no longer offered a benefit offsetting the cost for Service B.
Posted on 6/13/17 at 7:58 pm to anc
quote:
I offered my expertise and contacts on Service B and we agreed to split any profit that this brings to the company evenly
If this is written anywhere (email, letter, whatever) you have yourself a contract. Even if you don't, if you can show that they historically have been paying you for Service B work you probably still have a contract.
The question is whether y'all agreed to do it forever, or whether one side or the other can simply pull out of it when they want. If the latter, it sounds like they just did that.
Talk with a for real anal lawyer, you can probably get a quick free consult.
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