Derek: Liz, I feel like an idiot.
Liz: Why?
Derek: I got hoodwinked by a guy, and I should have known better.
Liz: Tell me the story.
Derek: Well, the guy used to be a vendor to a company I worked for. We got to know each other a little. I left that company and we stayed in touch. Now he has a new business.
Liz: Okay.
Derek: He called me about two months ago and wanted to have coffee because he said he was working with a group of investors to get a new company off the ground.
Liz: And that was perfect, because you were job-hunting...
Derek: Exactly. I thought it was beautiful timing. We had coffee and the deal sounded really good. It still sounds good, except the guy played me for a fool.
Liz: Run it down.
Derek: This guy Aaron, the guy I know, has two friends named Jake and Brian. The three of them are starting a company. It's a sports oriented online thing. I think it could be very popular. It fills a need.
Liz: Sounds great.
Derek: And I really asked a lot of questions, too! I'm a Marketing guy as you know. They are tech and finance guys. None of them knows very much about marketing, especially online marketing.
Liz: So they were talking about hiring you.
Derek: Yes, and I should have been more wary. They went right to compensation when we met, and they laid out a great compensation plan. Equity, car, big salary and bonus. It's a start-up. I should have asked right away "Whose money are we spending?"
Liz: Whose money did it turn out to be?
Derek: It turned out to be, from what I can tell, their money if they had any money, but they don't. They gave me a whole song and dance to get me to work for free and help them get the product launched.
Liz: You literally worked for free?
Derek: First it was just conversation. Then I sketched out a marketing strategy.
Liz: You sketched it out verbally, or in writing?
Derek: Both. I thought I was on the team.
Liz: What did they say was the hold-up in hiring you and paying you?
Derek: They said they had to generate some revenue first. I wrote the marketing copy. I designed their logo!
Liz: Oh my gosh. Did the product launch?
Derek: That's the thing. I put together a launch plan and the whole nine yards. They kept moving the date out. I saw a demo and the demo looked great. Then when I asked to see the version of the site that was going to launch, they fudged. They wouldn't commit. Then they stopped returning my calls completely.
Liz: What do you think is going on?
Derek: Now they go to investors, I guarantee it. I was just a means to an end. They have a marketing plan, a logo, a launch plan, marketing copy all ready to go. Why pay me? The investors will give them money and they'll hire someone at half my salary.
Liz: Have you asked Aaron or any of them point-blank if that's their plan?
Derek: For better or worse I don't have to, because another guy that I worked with at the same company where I met Aaron was already invited to an investor meeting. He said the product looked great and everybody in the room including him complimented the guys -- Aaron, Jake and Brian -- on the marketing plan. The guy I used to work with asked them "Isn't Derek part of this team?" because he had heard from me about the project. Aaron, Jake and Brian were quick to respond. "Oh, you know Derek? Derek is great. He gave us some advisory help getting started. He's moved on to other projects." Nice way to give me the message.
Liz: Wow. That stings!
Derek: It's painful learning as you would say. How much consulting work did I donate? Probably about twenty-five thousand dollars' worth.
Liz: Let's get altitude on it and see what the learning is.
Derek: I've been running over it in my mind. I was too eager and too quick to help. I was working on a handshake and a few emails that spelled out what my compensation package was going to be. I already went to see a lawyer. He said I really don't have anything to work with. Everything that was in writing talked about a potential opportunity, what the compensation plan would be if I were hired -- all very provisional.
Liz: So you're going to be a lot more discriminating in the future.
Derek: I went to Aaron's house and met his wife and played basketball with his kid. Some people have no ethics at all.
Liz: It's even worse than that. Aaron undoubtedly believes he did nothing wrong.
Derek: I'm sure that's true. They talk themselves into the view that anything I did, I donated freely to them just because I'm a nice guy.
Liz: Did you ever question Aaron or any of them about your relationship with them?
Derek: Right after I finished the launch plan, and I'm embarrassed to tell you that the launch plan is twelve pages long. It's detailed. I got into it.
Liz: You can still use it! It's part of your portfolio.
Derek: That's true. I called Aaron and said "I'm sending email messages into the void and getting no reply. I just sent a 12-page launch plan into the same void. What's the story? How come our last two meetings were cancelled at the last minute? What's the status?" Aaron sounded shocked and said "Don't you trust me, Derek?"
Liz: What did you say?
Derek: I said "I trusted you completely but now my trust level is fading." Aaron said "Wow, I thought you were more of a team player" and then I knew what was up. I knew it was time to move on.
Liz: It burns at first, but people like that are teachers.
Derek: It's going to take me some time to see it that way! I'd have a hard time speaking civilly to Aaron if I saw him on the street.
Liz: Do you think the project will succeed with people like Aaron, Jake and Brian at the helm?
Derek: It's sad, because the idea is great but I don't believe these guys will make it. If they get the investors on board, they'll stab them in the back too. They'll over-promise and under-deliver.
Liz: I'm glad you're not associated with them anymore.
Derek: I'm not putting it on my resume, which I could because I did the work, but who wants to be branded alongside people like that?
Liz: Life is long. I think this painful learning is going to help you in the long run.
Derek: Who asks a person "Don't you trust me?" with a wounded voice? Who knows how many people Aaron has treated the same way?
Liz: Forget Aaron now. You're growing muscles. That snake won't bite you again.
Derek: That's the bright side! Now I know. Show me the contract first.
Liz: You trust people that demonstrate their trustworthiness.
Derek: I was too wide-eyed. It is good learning, even if I feel like an idiot.
Liz: Don't feel that way! Once you figure out what you were supposed to learn from this -- as you have -- you get the power. You'll never put yourself in that situation again.
Derek: Well, there's my silver lining. Thanks, Coach!
