Free market

Today, I digress from the business of ConnectFu to mouth off just a bit about the free market, price competition, black Friday and my notion of fairness and business contracts.

Do you outsource your development to India? Russia? China? How does your vendor feel about this? Is he grateful for the world free market that the Internet has created for the improved lifestyle? Or does he believe, you are a member of the American Bourgeoisie taking advantage of his inferior position?

I have discovered (honestly, to my own surprise!) that I could not work with the latter. In a conversation that ensued over Skype, we started talking about the Black Friday. My former designer expressed confusion over why prices were low. After my crash course in market competition, he got the idea, but continued to insist that it was bad for business. He began complaining about being paid less because he was not in the US, about the unfairness of it all, his inability to deliver a quality product for the rate he is forced to charge...

After a few rounds of this, two things became clear. First, that I was getting unduly upset and was spending my time trying to educate a random person from Nepal about capitalism instead of getting the much needed work done. Second, that I would never be willing to work with him again.

I believe that people in business must deal fairly, or no business partnership is possible. Any arrangement where one party feels cheated, taken advantage of, will not yield productive result. I cannot trust a man who works for me through perceived coercion of any form, while looking for an opportunity to strike back. Though, it is not just a matter of trust. I don't want to enter into an arrangement where my partner is not fully committed with his mind, energy and enthusiasm to the project, to me and the idea we are building together. The world is full of creative people. Yet, creativity's full potential can be put behind bars just as easily as the man that possesses it. Only when the choice is free, the arrangement is fair, and the future depends on one's actions, can one take advantage of what is inside of him.

Though taken aback initially, I stand behind my reaction now. I will only enter into a contract with a man who is fully free, who chooses his obligations and payment in accordance to his notion of fairness, and I will do the same. I will not accept the much needed investment dollars from a VC if I have any doubt that our partnership is equitable, nor will I accept a deal from another man who believes he deserves better.

So, what are your thoughts? Would you enter into an arrangement with a slave? How about a man that hates you for the audacity to create a contract with him? Or despises you for your western values? Or simply thinks that your payment is unworthy of him? Could your business survive without entering into such an agreement? Could it succeed if it does?