You are talking about the "book of business" problem.
I agree but I think there might be other legal (or see "know the customer yourself" below) ways to protect your clients.
So while you can't prevent someone from working for a competitor I believe there is a reasonable way to protect the customer list and/or specifically soliciting an existing customer. [1]
Nothing can prevent a client who knows the new business from approaching the salesman of course. But if the salesman is prevented from contacting them it is a bit of friction.
Separately, a way that you can protect against this is also to build some loyalty (as the business owner) with the client. Make contact yourself and let them know you value their business. Not fail safe but will definitely help. In other words multiple contacts, not just one contact.
[1] I've seen this even with hair salons for that matter. You will see ads which say "Joan is now at XYZ Salon" because Joan isn't allowed to go after her clients. But she can advertise that she has a new job. But not directly (by direct mail to a list of only her clients but she could spray direct mail though or advertise in the local paper because it's not targeted).
> I've seen this even with hair salons for that matter.
This would be really odd for salons. Most beauticians are contractors so technically they are her clients. She's paying the salon to rent their facilities. So salons get the best of both worlds. They skirt labor laws and tax laws.
I agree but I think there might be other legal (or see "know the customer yourself" below) ways to protect your clients.
So while you can't prevent someone from working for a competitor I believe there is a reasonable way to protect the customer list and/or specifically soliciting an existing customer. [1]
Nothing can prevent a client who knows the new business from approaching the salesman of course. But if the salesman is prevented from contacting them it is a bit of friction.
Separately, a way that you can protect against this is also to build some loyalty (as the business owner) with the client. Make contact yourself and let them know you value their business. Not fail safe but will definitely help. In other words multiple contacts, not just one contact.
[1] I've seen this even with hair salons for that matter. You will see ads which say "Joan is now at XYZ Salon" because Joan isn't allowed to go after her clients. But she can advertise that she has a new job. But not directly (by direct mail to a list of only her clients but she could spray direct mail though or advertise in the local paper because it's not targeted).