Please Don’t Pitch Me A One Sided Venture

What is a one sided venture? It goes like this:

I understand you’re are a programmer? Well, I have this great idea for a product, it will be the next killer app, all I need you to do is sign this NDA, write a few thousand lines of code, and take a five percent equity stake in the company. I’ll do the rest.

That is a one sided venture. Why? Because the programmer is doing all the work, for air, and hoping you can do your job; sell the product to investors or customers.

I get this type of proposal at least once a week, if not more. I’m sure there are many projects that have had success with this model. But for the one that succeeds, thousands never make it off the floor.

I would love to have someone pitch me a venture where I’m offered compensation up front for the work I do, AND a stake in the company. Then everyone has skin in the game. Why do people think programmers should take such a risk? Show me you’ve got something invested in the venture besides the idea. Those are cheap, and I hear hundreds of ideas a year. For heaven sakes, I have hundreds of ideas.

That brings me to non disclosure agreements, or NDA’s. If I can get away without signing one, I will. When a lawyer tells you not to discuss your idea with anyone until they sign the NDA, they are smoking crack. Asking me to sign an NDA really tells me the idea isn’t that solid, or you think you’re the only one on the planet with the idea, which of course probably isn’t true. If not signing an NDA keeps me from accepting a project, most of the time it’s ok with me.

Look, if I had time to steal ideas, you would already know that about me before we spoke, which means you wouldn’t be talking with me in the first place. And if it came right down to me signing one, I would probably ask you to sign an agreement giving me full and exclusive rights to any code written. Seems only fair no?

All I’m asking is if you’re in the market for a freelancer to help get your project off the ground, don’t go in expecting they will fall all over themselves to help you, for free. Use some common sense. Show us that you are serious about the product and business. We’ll play ball if the venture seems legit, and you have a proven track record too.

In full disclosure, I’ve excepted work on speculation in the past, but I’ve always tried to give something tangible back in return. I would never expect to get something for free, and use it in a project I am making money on.

[off my soap box, let the flames begin]