How to guarantee the developer won't steal the idea?

[WarriorV]

Hello guys, I'm new to the Forum and very excited to enter the Fastlane.

I have an idea for a software that can be sold based on subscription.

I want to hire someone to develop it so I can launch it before the year is over, my biggest doubt is:

How do I make sure the developer won't steal the business idea for himself?

I'm learning programming, but still at the very basic. If I just learn everyday to develop it, I won't have time to work on the marketing, research, network, etc.

I've been thinking about starting my own business for a while now, a few weeks ago I finished reading The Millionaire Fastlane . This will be my first experience. Any advice is very welcome!

If this has been asked before, please redirect me to the thread. I searched for it but found nothing.

 

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[theag]

He wont steal it, because its way easier and it most cases much more profitable to code it than to market it.

 

[HoneyBadger]

Software Engineer by day here -

It is not uncommon for freelancers to have to sign non-disclosure agreements drafted by lawyers. Understand then that hiring devs from other countries will make litigation harder if not impossible. I am not a lawyer though so it is not legal advice.

 

[WarriorV]

He wont steal it, because its way easier and it most cases much more profitable to code it than to market it.

When I'm speaking with him, should I be careful and disclose only what's necessary for him to develop it? What I mean is, just tell him what I want the software to do and that it needs to work based on a monthly or yearly subscription fee.
I'm assuming the subscription needs to be mentioned, in order to block the service when a user is not paying.

 

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[Scot]

Have a NDA drafted and signed before you start talking to get your quote for the development. After they agree, it's smart to have a contract drawn up for the terms of the developement too.

 

[Scot]

When I'm speaking with him, should I be careful and disclose only what's necessary for him to develop it? What I mean is, just tell him what I want the software to do and that it needs to work based on a monthly or yearly subscription fee.
I'm assuming the subscription needs to be mentioned, in order to block the service when a user is not paying.

For my app, I gave the developer a basic function of the site and app, no details to which business it serves or any particulars. Said, "can you code something like this?" He said yes. We are meeting in a week to go over particulars and draft a contract, which like stated above, NDA first, talk, then agree to terms, sign contract.

 

[WarriorV]

For my app, I gave the developer a basic function of the site and app, no details to which business it serves or any particulars. Said, "can you code something like this?" He said yes. We are meeting in a week to go over particulars and draft a contract, which like stated above, NDA first, talk, then agree to terms, sign contract.

Thanks! I think the type of software I want already says a lot about what the business is, so I will make sure he signs the NDA.

 

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[theag]

When I'm speaking with him, should I be careful and disclose only what's necessary for him to develop it? What I mean is, just tell him what I want the software to do and that it needs to work based on a monthly or yearly subscription fee.
I'm assuming the subscription needs to be mentioned, in order to block the service when a user is not paying.

Well you can try to keep him in the dark but that will influence your product quality. Your software will most likely need ongoing work, so you cant keep him in the dark forever, at which point either legal measures like nda, non-compete, employment contract or trust have to come into play.

 

[HoneyBadger]

Thanks! I think the type of software I want already says a lot about what the business is, so I will make sure he signs the NDA.

I do also recommend fully thinking out what you want the system to do BEFORE getting quotes. In the corporate world at least I can not tell you how much this makes a difference in the cost of a software project.

For instance you may think: I want users to post comments on each picture
Software dev thinks: Ok simple anonymous comments database table and simple input form - 2 hours

What you meant: Users can create accounts and post comments, they should be able to edit comments and should be able to reply to other comments
Software dev thinks: Multiple database tables (comments, users + any extra tables related to users sign up that may for security purposes be seperate tables/databases/servers), multiple pages (password resets, signups), advanced form logic (nesting comments, can edit, etc.) - 40-??? hours

The sad thing is most projects run through both of these scenarios - just the first one is a waste of time & money (unless you are doing so willingly as an mvp type scenario).

 

[theag]

There is a recording of a INSIDERS conference call a member did some time ago about how to outsource, write specifications, etc without knowing how to code. If you want to go that route, this call alone is worth the cost of the INSIDERS subscription.

https://www.thefastlaneforum.com/community/threads/insider-call-outsourcing-with-elance.45914/

 

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[WarriorV]

I do also recommend fully thinking out what you want the system to do BEFORE getting quotes. In the corporate world at least I can not tell you how much this makes a difference in the cost of a software project.

For instance you may think: I want users to post comments on each picture
Software dev thinks: Ok simple anonymous comments database table and simple input form - 2 hours

What you meant: Users can create accounts and post comments, they should be able to edit comments and should be able to reply to other comments
Software dev thinks: Multiple database tables (comments, users + any extra tables related to users sign up that may for security purposes be seperate tables/databases/servers), multiple pages (password resets, signups), advanced form logic (nesting comments, can edit, etc.) - 40-??? hours

The sad thing is most projects run through both of these scenarios - just the first one is a waste of time & money (unless you are doing so willingly as an mvp type scenario).

Thanks! I will make sure to think out every detail needed beforehand. Out of curiosity, what does "mvp type scenario" mean?

 

[HoneyBadger]

Thanks! I will make sure to think out every detail needed beforehand. Out of curiosity, what does "mvp type scenario" mean?

Sorry for the jargon, an MVP is actually more of a business term - it is 'minimum viable product'. In the scenarios I gave maybe the first one that takes 2 hours is okay for launch but then upon finding your product had value you may choose to upgrade to the second one that is more costly.

 

[ravenspear]

Most devs that want to work for someone else on a project writing code are doing so because they do not want to run a business.

If you want a quality product you need to be as transparent as possible. This is a VERY common reason that software fails to do what it is designed to do, if the customer is vague on exactly what the requirements are or omits needed detail.

As as software dev myself this is very frustrating when that happens, because then you essentially have to guess what they want.

 

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[WarriorV]

There is a recording of a INSIDERS conference call a member did some time ago about how to outsource, write specifications, etc without knowing how to code. If you want to go that route, this call alone is worth the cost of the INSIDERS subscription.

https://www.thefastlaneforum.com/community/threads/insider-call-outsourcing-with-elance.45914/

Thanks for the tip, unfortunately I don't have enough to sign up yet. When I can, listening to it will be the first thing I do.

 

[WarriorV]

Most devs that want to work for someone else on a project writing code are doing so because they do not want to run a business.

If you want a quality product you need to be as transparent as possible. This is a VERY common reason that software fails to do what it is designed to do, if the customer is vague on exactly what the requirements are or omits needed detail.

As as software dev myself this is very frustrating when that happens, because then you essentially have to guess what they want.

Thanks for the input! I will do my best to give all the necessary information, having the NDA and whatever else needed signed.

 

[Vigilante]

Nobody cares about your idea. Your developer has 15 ideas on his own, most of which are probably better than yours, that he hasn't gotten to yet. He gets paid to build your idea for a fee. If he steals your idea, his business is OVER and you sue him for every dollar he ever makes.

Worry more about execution, and less about the fact that your idea is so great... the very people you are hiring to do what you don't know how to do would care enough to undermine you and steal it.

 

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[ZCP]

How many have you sold?

Focus.

 

[WarriorV]

Nobody cares about your idea. Your developer has 15 ideas on his own, most of which are probably better than yours, that he hasn't gotten to yet. He gets paid to build your idea for a fee. If he steals your idea, his business is OVER and you sue him for every dollar he ever makes.

Worry more about execution, and less about the fact that your idea is so great... the very people you are hiring to do what you don't know how to do would care enough to undermine you and steal it.

Thanks! I'm not implying that my idea is so great, I just needed to ask a question to learn how this is done.

 

[Raoul Duke]

Nobody cares about your idea. Your developer has 15 ideas on his own, most of which are probably better than yours, that he hasn't gotten to yet. He gets paid to build your idea for a fee. If he steals your idea, his business is OVER and you sue him for every dollar he ever makes.

Worry more about execution, and less about the fact that your idea is so great... the very people you are hiring to do what you don't know how to do would care enough to undermine you and steal it.

Unless you're Mark Zuckerberg.

 

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[Vigilante]

Unless you're Mark Zuckerberg.

I'm not.

I just have an idea.

Like millions of others.

The ONLY difference between me and them? I will act on mine and see it through to volition.

 

[ravenspear]

Unless you're Mark Zuckerberg.

Even if that case, the people he stole it from sued and became multimillionaires.

 

[Jon L]

Nobody cares about your idea. Your developer has 15 ideas on his own, most of which are probably better than yours, that he hasn't gotten to yet. He gets paid to build your idea for a fee. If he steals your idea, his business is OVER and you sue him for every dollar he ever makes.

Worry more about execution, and less about the fact that your idea is so great... the very people you are hiring to do what you don't know how to do would care enough to undermine you and steal it.

This. Precisely. I have a company that writes custom software. I am very entrepreneurially minded. With one guy, I signed a contract that said I wouldn't compete with him. I'm fine with that because I don't want to compete with him. Another product, I'm taking a percentage of equity for a reduced payment on developing the product. Another one, I'm developing myself after my friend brought me the idea. He'll have equity in the product. A bunch more are just custom pieces that apply to only that particular customer. I also have a list ... literally about 15 long ... of other ideas that we could develop. One of them is a product that has already been written that would essentially be given to us. Its already been sold to numerous Fortune 500 companies, so its proven to make money. We just have to get to work on it and modify it to suit our purposes.

So...I wouldn't worry about this. If your developer is so desperate that he needs to steal your idea, I'd let him try. Would be funny to watch. (If he does, though, he's likely a horrible developer, and I would go find a new one.)

Edit: One more thing...Requirements gathering is VERY difficult. That is where you come in. Some random developer out there (me included) will have a very steep hill to climb when coming up with all the various features that are required to meet the market you have in mind. You already know your market. The developer doesn't. Let's say that they do copy your system. Besides suing them, you can go to another developer and keep adding the appropriate features to your system based on your knowledge of the market. The developer won't know what to do next.

 

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[Vigilante]

Hello guys, I'm new to the Forum and very excited to enter the Fastlane.

I have an idea for a software that can be sold based on subscription.

I want to hire someone to develop it so I can launch it before the year is over, my biggest doubt is:

How do I make sure the developer won't steal the business idea for himself?

I'm learning programming, but still at the very basic. If I just learn everyday to develop it, I won't have time to work on the marketing, research, network, etc.

I've been thinking about starting my own business for a while now, a few weeks ago I finished reading The Millionaire Fastlane . This will be my first experience. Any advice is very welcome!

If this has been asked before, please redirect me to the thread. I searched for it but found nothing.

@Chris Kelsey your thoughts?

 

[WarriorV]

This. Precisely. I have a company that writes custom software. I am very entrepreneurially minded. With one guy, I signed a contract that said I wouldn't compete with him. I'm fine with that because I don't want to compete with him. Another product, I'm taking a percentage of equity for a reduced payment on developing the product. Another one, I'm developing myself after my friend brought me the idea. He'll have equity in the product. A bunch more are just custom pieces that apply to only that particular customer. I also have a list ... literally about 15 long ... of other ideas that we could develop. One of them is a product that has already been written that would essentially be given to us. Its already been sold to numerous Fortune 500 companies, so its proven to make money. We just have to get to work on it and modify it to suit our purposes.

So...I wouldn't worry about this. If your developer is so desperate that he needs to steal your idea, I'd let him try. Would be funny to watch. (If he does, though, he's likely a horrible developer, and I would go find a new one.)

Edit: One more thing...Requirements gathering is VERY difficult. That is where you come in. Some random developer out there (me included) will have a very steep hill to climb when coming up with all the various features that are required to meet the market you have in mind. You already know your market. The developer doesn't. Let's say that they do copy your system. Besides suing them, you can go to another developer and keep adding the appropriate features to your system based on your knowledge of the market. The developer won't know what to do next.

Thank you for the valuable input! I had thought about this too, that he wouldn't be able to carry it out.

I've never run a business before, maybe I'm being too afraid. But with every step I take, I get more motivated, for this is what I want to do.

 

[limitless_c]

I interviewed around 20 developers via skype before I found 2 guys that I liked, they were all from my country so the possibilities of stealing my idea were high.
In the interview I shared the idea, no nda no nothing.

2 developers that I interviewed stole the idea and tried to make it on his own.

In 1-2 months they were out of business.

 

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[Ninjakid]

Honestly people get so afraid that someone will steal their idea, but realistically, it's not even smart to steal someone's idea. A developer has their reputation at stake, and they usually have more to gain by fulfilling their obligation and cashing in for their work. People are waaaaaaaaaay to scared of their precious little "idea" being stolen.

But in case you're really worried, have them sign an NDA.

 

[WarriorV]

Honestly people get so afraid that someone will steal their idea, but realistically, it's not even smart to steal someone's idea. A developer has their reputation at stake, and they usually have more to gain by fulfilling their obligation and cashing in for their work. People are waaaaaaaaaay to scared of their precious little "idea" being stolen.

But in case you're really worried, have them sign an NDA.

I was worried mainly because of what limitless said; I think I'll have to work with someone from my country.

 

[limitless_c]

I was worried mainly because of what limitless said; I think I'll have to work with someone from my country.

If your idea is for your country I wouldnt worry about a guy in India copying it. You need to worry about developers from your country.

But, in my opinion, they are also the best to work with because you can meet them in person and work with them more closely.

I was writing some tips for you but I didn't hire developers, I partnered with them so its a little different. Good luck!

 

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[Ankerstein17]

IM going to make this really simple with my opinion.. ideas are worth shit. Every thing is execution. Any thing can be sold, you just need to find a market for it.

Business is about building relationships, and trust acts as a key anchor to that relationship. Non-discosures can always be a good idea.

What you do, is create an employment contract if all parties wish to move forward, stating that all creations and work done would be owned by "X" company name. That way, if he leaves his work completed is company property and can't take it else where. With this in mind, also inform the person what he does not get in the deal. It's important to state both what each party can get but also what is not included.

Hopefully this helps

 

[Jon L]

If your idea is for your country I wouldnt worry about a guy in India copying it. You need to worry about developers from your country.

But, in my opinion, they are also the best to work with because you can meet them in person and work with them more closely.

I was writing some tips for you but I didn't hire developers, I partnered with them so its a little different. Good luck!

on that note...I use developers in Pakistan and am based in the US. I have a sales employee in Pakistan who is able to drive to the developer's house and yell at them if need be. (we've needed to do this on more than a few occasions). I also have a developer in Portugal that is amazing to work with. I have no one else in Portugal, and have basically gotten lucky with this particular guy.

What I'm saying is: if you're not hiring local, make absolute sure that you check a bunch of references, and are completely convinced of their ability to perform before you hire them. Not only can you lose money, but you can lose months worth of time if you involve the wrong people on your project.