No More Non-Compete's for Sales Reps

Everything that sales reps should know about the ruling

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Good Morning and Happy National Honesty Day! We’ll be celebrating the holiday by being totally honest with our prospects, and starting each call with, 'This is a cold call, and I want to sell you something.' Give it a try and let us know how it goes. 🤣 

In today’s Follow Up:

  • No more non-competes 🤝 

  • Sales tip of the day 💡 

  • Sales news around the web 📰 

  • Sales jobs, LinkedIn & a meme 😂 

What Sales Reps Need To Know: The End of Non-Competes

Non competes are like signing a prenup with a billionaire…

Great for protecting the billionaire that made it, but not the other person.

Last Tuesday, the Federal Trade Commission (FTC) announced a ban on non-compete agreements for most U.S. employees, which will go into effect in 120 days.

The ban is estimated to affect over 30 million people or 1 in 5 adult workers, which means this ruling will probably affect you at some point in your career.

So, we sent a Slack message to the intern last night and told him to pour up his finest Monster energy drink and find everything sales reps should know about the ruling.

Here’s what he found.

What Are They? ✍️ 

In basic terms, Non-compete agreements stop employees from moving to competing firms within their industry.

Companies use them to stop employees from taking the information they’ve learned on the job and using it to jump to a competitor or start their own business.

It’s common to see them in industries like tech and finance, or any industry that has ‘trade secrets’.

Why the Ban? 👀 

The FTC’s decision to eliminate non-compete agreements comes from a belief that they are an “unfair method of competition”.

They are believed to restrict wage growth and innovation and stop workers from pursuing better opportunities.

By banning non-compete agreements, the FTC estimates:

  • The average worker's earnings will increase by $524 per year.

  • A 2.7% increase in new businesses being started (8,500 new businesses/year).

  • A decrease in healthcare costs by $194 billion over the next 10 years.

  • 17,000-29,000 more patents will be filled each year.

Will all of this come true? Nobody knows…

But it sounds nice. 🤷‍♂️ 

What this Means For You? 🫵 

If you feel locked down by a non-compete right now, this news could be the key to your handcuffs.

The new ruling will ban every new non-compete starting around August. But like any great news, there’s some fine print to read.

If you’re considered an executive leader, existing non-competes will stay in place.

The FTC defines a senior leader as someone who:

  • Makes more than $151,164 per year

  • Has policymaking power.

We’re still not sure if making Bagel Fridays a company policy counts. Waiting for a response from our lawyer…

What’s Next? ▶️ 

Like any new rules, the decision has sparked controversy with business groups.

Last Wednesday, the U.S. Chamber of Commerce sued the FTC, saying that the ruling “breaks with centuries of state and federal law and rests on novel claims of authority by the Commission”.

The lawsuit may delay the ruling from taking place in 120 days, or it might do nothing… nobody knows. 🤷‍♂️ 

Editors Note: Whether the ruling gets delayed or not, NDAs still hold power, which means you still can’t disclose company secrets to competitors.

Have you signed a non-compete before?

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Sales Tip of The Day 💡 

When you’re making a sales call, confirm someone’s name with your tone, not with a question.

 Hey, is this Bob?
 Hey, Bob?

When you ask for their name with a question, you’re starting the call by telling the prospect you don’t know them.

Sales Around The Web 🗞️ 

Remote Sales Jobs 💼 

Checking In On LinkedIn

Grind more than anyone who’s ground! 😅 

Sales Meme of the Day

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