Let’s set the scene: you own a digital marketing agency and in your weekly team meeting, you share a new idea you have for your business.
The team is excited and everyone is on board. You’re excited to bring this vision to life!
Suddenly, one of your key team members submits their notice to leave. “No problem,” you think. People move on all the time, it’s a part of business ownership, right?
UNTIL, weeks later, you find out this ex-team member is launching something of their own. The worst part? It’s based on YOUR idea. The one that you shared in the team meeting.
You’re frustrated because you shared that idea in confidence and now you aren’t sure what to do. Is there anything you can do in a scenario like this?
Yes… IF that team member signed an NDA – a Non-Disclosure Agreement.
If they didn't? There’s unfortunately not much you can do!
An NDA can help protect more than just your big ideas, it safeguards the sensitive and strategic info behind them, like your client processes, launch timelines, marketing methods, and internal systems. (And while “ideas” alone aren’t always legally protected, sharing them under an NDA gives you the legal muscle you need if someone tries to use them without your okay.)
To help you understand the ins and outs of Non-Disclosure Agreements, this blog post is going to cover what exactly they are, who needs them, when you need them, and ultimately what to include in the agreement.
What is a Non-Disclosure Agreement?
First things first, let’s start with the basics. A Non-Disclosure Agreement (NDA) is a legally binding contract that creates a confidential relationship between two or more parties. It sets the ground rules for what information can and cannot be shared, and what happens if someone breaks that confidentiality.
In plain English? It’s a way to say, “I’m going to tell you something private. You’re agreeing to keep it that way.”
NDAs can be mutual, meaning that both parties are sharing confidential information, or one-sided, meaning only one party is doing the sharing.
Either way, they clearly define what’s considered confidential, how long that confidentiality lasts, and what the consequences are if someone leaks information.
Who Needs (and When) To Implement an NDA?
Now that you know what exactly an NDA is, the next thing to clarify is who needs one of these agreements and when it should be implemented.
One of the biggest myths about non-disclosures is that they’re just for fancy, big corporations, like lawyers or tech founders – those in high-stake or high-dollar situations
But the truth is, anytime you’re sharing sensitive or proprietary information with someone (and you want to make sure it stays private) an NDA is worth considering.
A good rule of thumb is if you don’t want the information to “leave the room,” you should have an NDA in place.
In fact, using one can signal that you take your business seriously and respect both your own boundaries and the people you work with.
Here are a few real-life examples of when you might want to use one:
- Coaches sharing proprietary exercises, signature frameworks, or client transformation methods with a marketing team
- Course creators working with launch consultants who need access to your content before it's public
- Designers or branding professionals outsourcing part of a client project that involves accessing creative assets before delivery
- Virtual assistants gaining backend access to email lists, sales funnels, or payment data
What To Include In a Non-Disclosure Agreement
Knowing what an NDA is and knowing when to use one is one thing, but actually implementing an NDA that’s legally binding is another.
Like many legal agreements, not all NDAs are created equal. You want to make sure that yours covers the key components that hold up legally and clearly communicate what’s expected.
As your lawyer bestie, here’s what I recommend including in your NDA:
- Definition of Confidential Information – spell out exactly what information is considered confidential, such as business plans, customer data, financial information, product designs, marketing strategies, etc.
- Obligations of the Receiving Party – clarify how the other party is expected to handle the information. This usually means they agree not to disclose, copy, or use the information for any purpose other than the one agreed upon.
- Duration of the Agreement – For most online businesses, a 2–3 year term is common, though indefinite clauses are often used when the confidential info could still affect your business long after the project ends, like client lists, product strategies, or evergreen funnels.
- Exclusions from Confidentiality – it’s typical to include exclusions for information that is already public, was known prior to the agreement, or is disclosed through no fault of the receiving party.
- Consequences of Breach – state the consequences if someone breaks the agreement, whether that’s legal action, damages, or another remedy. This clause is key in showing that the NDA is enforceable.
Why Having an NDA Template Ready Is a Smart Move
Overall, NDAs can protect your work, your business, and your relationships, but only if you actually use them. You don’t want to wait until you really need an NDA (like in the scenario I described earlier) to try to create one from scratch. You want it ready to go so you can implement it right away!
And no, you don’t have to figure out how to create one all by yourself. My Non-Disclosure Agreement Template is designed for everyday use by small business owners, freelancers, and creative professionals.
Whether you're handing off a Google Drive folder to a new VA, previewing a sales page with a strategist, or sharing a fresh course outline with a collaborator, you’ll want this easy-to-use NDA template that gives you the language you need to clearly set expectations and boundaries!
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