One of the frustrations reiterated again and again by marketers and their agencies is that there is an added layer of complexity when dealing with ad networks. Often an advertiser needs to worry about issues that aren’t present when placing media with bigger, branded web properties. When negotiating with the ad networks, marketers essentially have only one point of leverage, and it’s critical that marketers incorporate it into their contracts: the out clause.

Most marketers we’ve spoken to at Radar Research are willing to strike a deal as long as they have the option of a short contract. With most networks operating on a CPC or CPA basis, marketers need to have the option of terminating the contract if the network doesn’t meet performance goals.

An out clause gives the marketer the leverage necessary to renegotiate under-performing deals. If the network meets or exceeds performance goals, scaling upwards isn’t difficult.