According to Baumgartner, both companies have had a longstanding relationship, which facilitated the deal.
“Jaime [Galvan], who used to work at TripleXCash, has been a good friend of mine and Jay’s for a long time,” Baumgartner said. “When Jaime founded FreshChecks we gave him a lot of help, from consulting to advice on design. Everything just short of traffic.”
While FreshChecks managed to build a strong program, according to Baumgartner, the company lacked marketing expertise.
“Jaime and his investor approached us about taking over because they knew us and we had helped so much with the design,” he said.
The acquisition should bring a much-needed boost to the FreshChecks program, Jay told XBIZ.
“I think the potential is there to make it a really great program,” Jay said. “They gave the program thing a good shot, they had good sites, but they didn’t have the marketing to drive it home. We’ll use our resources to do that.”
While marketing was one aspect of the deal, Baumgartner also said the acquisition made sense from a content perspective.
“We have a strong interracial focus, which we will continue to have,” he said. “But they’ve got other sites with more niche content, which will be a nice compliment for our affiliates.”
According to Baumgartner, nothing but the name on the checks will change from the affiliates perspective, adding that the same payment structure will remain the same.