Ethics? My client's competitor wants my services

Reesa Marchetti · #1 (**permalink**) 01-25-2006, 12:39 PM

Hi,

I have been contacted by an e-merchant who is in competition with one of my current Web design clients.

I'm not sure if this an ethical issue at all, but now that my Web design business has become successful, this situation is starting to occur. My design packages include marketing consulting and search engine optimization.

The competitor wants me to do for his site what I have done for my existing client; that is, help him get higher search engine positions and make more money.

If I were a talent agency, I would book competing models and actors without hesitation. So why do I feel queasy about accepting this new client, just because he's in competition with my existing client?

I would love to hear form other web designers who have encountered this situation.

**mike** · #2 (**permalink**) 01-25-2006, 01:01 PM

I don't think you would want to limit yourself to 1 client per niche or industry would you? As such, I'd say it's an easy answer.

jazzmatazz2005 · #3 (**permalink**) 01-25-2006, 01:04 PM

Go For it.

JuniorOnline · #4 (**permalink**) 01-25-2006, 01:30 PM

go for it:)

online marketing companies deal with different companies in the same niche.. so why should you be any different? this is a compettitive world.

**dharrison** · #5 (**permalink**) 01-25-2006, 01:47 PM

Hi Reesa

I'd say go for it. Especially if you're so successful that you have competing companies both demanding your services. :)

If I would say anything, I'd say exercise caution. It is tempting (and quite easy) to disclose too much about a company and competitor B might want to know all about competitor A's methods, tricks, etc.

Having said that, a bit of competitiveness could be a good thing, especially if say, competitor A has been a tightwad up until now and he find that competitor B is ranking better because he has invested in that software/service, etc.

HTH

JKomp · #6 (**permalink**) 01-25-2006, 02:36 PM

Congrats, you may have just found your niche.
Go for it :D

ADAM Web Design · #7 (**permalink**) 01-25-2006, 05:10 PM

I'm halfway between Mike and the rest.

Go for it...

IIIIIIIIIIIIIIIIIIIF...

you ask your first client and he/she agrees. Always clear any potential ethical issues with those who you know sign your chequest first.

greeneagle · #8 (**permalink**) 01-25-2006, 06:56 PM

I am going to have to lean toward Adam's thoughts on this issue. Although I have multiple clients in the Oil and Gas Industry, none of them are competitors.

In my business there might be trade secret concerns. You could always offer your existing client a confidentiality agreement, if you decided to approach them about the topic. You may even find that it would enhance customer trust and loyalty, if handled properly.

If you don't decide to lay it on the table, you may run the risk of gaining a new client at the expense of losing the other.

Having said that. There is always room for more than one, in top SERP. Working it from a two ended niche may help you learn the best SEO/SEM tips for that market segment, benefiting both clients.

Ken

darren13 · #9 (**permalink**) 01-25-2006, 07:00 PM

...tricky one, must feel a bit weird at first, but if you were a blacksmith and you made shoes for horses, would you only make horse-shoes for one horse, or one owner? Each client is an individual I suppose and as such has no vito on who you sell your services to...we could get into another analogy there(!) - I think your cost goes up (sharply) in a scenario where a client from a certain market segment requests your exclusive attention!
Darren.

mikesmith76 · #10 (**permalink**) 01-25-2006, 08:16 PM

most definately a yes, the competition is between the two clients and nothing to do with yourself. however be very careful with what information you provide client B, they have no right whatsoever to know anything about client A or their services. Offering this information as a deal maker could get you into a lot of trouble

kgun · #11 (**permalink**) 01-25-2006, 08:35 PM

In my business there might be trade secret concerns

From theoretical economics, competition gives the best solutions. From a practical point of view, other considerations are important.

Sometimes the answer is not yes or no, but depends on the circumstances.

If you earn more on being a double spy, would you go for it :-)

The most important thing is being earnest and how you treat others. Moeny can't buy you love. Money can't buy you credibility.

Filmo · #12 (**permalink**) 01-25-2006, 09:24 PM

I come at this from the client side.

To the extent that work performed for us in optimizing our site for particular key words involved any proprietary work or efforts done on our behalf and paid for by us, we would be very concerned if our contractor then started to work for our direct competitors on the same key words or phrases. In particular if techniques or methods develop on our dime specifically to optimize our site for SEO and SERP ended up being used to displace us or directly compete with us.

This would be a direct conflict of interest in our books and in the eyes of the courts. One could veiw this as damaging the original client who would then need to book more work to compete against the new threat. Depending on your contract, you could end up in deep legal trouble from one or both parties if they later find and believe that you were playing one off the other using specific work paid for by one to 'displace' or compete with the other. Nothing pisses people off more that the belief (rightly or wrongly) that somebody is playing both sides of the deal.

Since I think most of you would believe that the services you provide are unique and not generic, your clients will treat them as such and depending on your contracts probably spell it out as such. Trade secrets mentioned above are definitely a concern.

Lawyers run into this alot and you would be well advised to follow their lead and get a release from conflict of interest from the original party. Particularly if the original party is large enough to hurt you later on. (i.e. large enough to hire a lawyer to sue you for everything you have and drive you out of business.)

That said, I think the conflict of interest would be much less if it's in the same general industry. For example, optimizing a car part site and a car rental site probably not a problem. For example we're a transription company, and we would not mind if our SEO wanted to optimize a Medical Transcription company because we don't provide those services. If they wanted to optimize a competitor doing the same type of work we do, then we'd have a problem.

Atlantean · #13 (**permalink**) 01-25-2006, 10:45 PM

As a designer, I'd have to consider my bottom line.

However, I agree with Filmo. You don't want to lose your existing client either. From at least the first client's point of view, I would call it a conflict of interest.

Perhaps you could explain to the second client that working for them consitutes a conflict of interest and that you would like to recommend a firm that you believe will do the best job. In the process, contact your recommended design firm and try to negotiate a referral fee.

google junky · #14 (**permalink**) 01-25-2006, 11:11 PM

Reesa Marchetti,

Have you ever tried to play yourself at a game of chess?
Who wins in the end?

TheGarty · #15 (**permalink**) 01-25-2006, 11:38 PM

I have been in this stuation for two real estate companies before.

I told the company that i had created the original website that i intended to do a website for their competitor.

They didnt like the idea and offered me a settlement not to work on the other website.

I think it would be unfair on yourself to limit yourself to one site per industry... you will eventually work yuorself out of the market ;-)

As long as the proprietary work that you did for the other company (if that is the case) is not used, and you make it clear to everyone waht you are about to do... sure go for it!

I often find the most important things in these situations are communication.

**mike** · #16 (**permalink**) 01-26-2006, 02:53 AM

Quote:

Originally Posted by kgun

Moeny can't buy you love. Money can't buy you credibility.

--- politics excepted of course.

But certainly, if you're talking about intellectual property or trade secret information that does indeed change the equation. However for SEO/SEM your exposure to the deep dark company goodies is generally minimal in the vast majority of cases.

Clearly, you would be responsible for treating them as individual cases as well. I don't see where performing design and SEO/SEM work for two companies within the same industry is anything that should be considered wrong however.

If a magazine has Coke as a sponsor on page 3, should they not sell an ad to Pepsi on page 4? Exclusivity is not implied in any marketing/advertising agency I've ever heard of in traditional media. Certainly, there exist exclusivity clauses in many arrangements and contracts, but these will almost always be negotiated.

mikesmith76 · #17 (**permalink**) 01-26-2006, 04:13 AM

Quote:

In particular if techniques or methods develop on our dime specifically to optimize our site for SEO and SERP ended up being used to displace us or directly compete with us.

If the techniques mentionned were developed by the web development company and not the client it is up to the company how they choose to use those techniques in the future.

As mentionned though if you speak to the original client and they do not like the idea of you working with a competitor let them offer you some monetary persuasion. If not your in the industry to make money, not friends

MrLeN · #18 (**permalink**) 01-26-2006, 05:51 AM

Well, as per usual (and I don't know why this keeps happening, I don't do it on purpose), I am going to have to go against the grain here.

I am currently working for a particular company, doing my utmost best to obtain, at the very least, top 10 rankings for the top 300 search terms for its niche, and if possible #1 rankings (and I currently have about 90).

I honestly couldn't dream of doing the same thing for one of the business's competitors. Not just for moral or ethical reasons, but because I'd be blowing my own foot off.

How can I get #1 rankings for two companies? The whole concept is any oxymoron. The analogies above are incorrect. You're not selling horse shoes or any product that can be duplicated for multiple customers. A better analogy would be that you are selling a "golden" horse shoe. You only have one and you can't sell that same shoe two different customers.

I have my own website, which offers the same information as the company I am working for. The moment I got the job, I pulled down the store, closed all the content pages and modified the index page so that it's not targeting the same keywords. I am not interested in competing with someone who is paying me for #1 rankings.

If you're any good at SEO, and have confidence in yourself and your skills, then the question is a no brainer. You can't SEO two sites for the same niche. To fool yourself into thinking you can (for what ever reason) is greedy, immoral, unethical, complicated, dishonest, misleading and unreasonable.

But then again, most people these days excel in the traits I just listed above, without so much as blinking an eye (ie: It's just common etiquette, and a part of life these days, unfortunately. Common conduct). So, I'll leave you to figure it out.

My short answer is: I wouldn't think of it.

MrLeN

N30 · #19 (**permalink**) 01-26-2006, 06:54 AM

At my old internet marketing company we had a policy of not taking on clients in exactly the same business & had exclusivity included in the service agreement (which the client had to pay for) because it would've been a conflict of interest.

BUT if there is some variation between the two companies, like one sells golden horseshoes but the other sells silver ones, then you won't be optimising for exactly the same rankings.

It's all swings & roundabouts :s

kgun · #20 (**permalink**) 01-26-2006, 10:55 AM

Yes, written contracts may be good.

Example: You promise not to work for a competitor in x months. Usual contracts in Norway.

I think MrLeN's post was very good.

Do you think he has the same attitude 30 years from now?