Trump Truth Social Network

Truth Social – Social Media Startup

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Could Truth Social Become a Big Success?

Marketers and small business owners have been waiting years for a legitimate new social media platform to appear.

Being held captive by the big tech cartel has meant much higher marketing costs and shrinking reach to customers.  And social entrepreneurs have been stuck in inertia and fear, paralyzed to visualize or capitalize a new social network. But out of the ashes of the US political battles, a solution might be arising.

 

A new social network would offer more opportunity to connect with a larger number of people.  Facebook, as I’m sure you’re well aware has restricted visibility of posts to a small number of Friends in everyone’s network, and that group of friends has been limited as well. Twitter and Linkedin did the same restrictive throttling of organic reach.

FaceBook and Twitter: Squeezing Small Business for Every Penny

The reason for restrictions and squeezing is simple: monopolizing then restricting reach makes everyone including powerless small business pay excessively for reach and visibility. And consider that Facebook’s platform/social network has nothing to do with their field of business. Since Facebook and Twitter have such a monopoly on reach, business is forced to use them.  Billions in profits are the prize. It’s like printing money.

The major social networks colluded to ensure all users would have to pay excessively to reach a wider audience. Good for FB and Twitter profits, but not good for everyone else.  FB and Twitter have reasoned that that all messages sent to those outside a core selected group of people were business or promotional messages and should have to be paid for.

This has allowed companies including Facebook, Twitter (and Google) to game the system for their own benefit. And hedge funds loved it, buying up stock and pushing up the price of Facebook stock, Twitter stock, and Google stock. And advertisers pay ad rates that Facebook, Linkedin, and Twitter have established arbitrarily, not a free market price.

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Add on censorship of messages, and you can see why so many people are angry with the social media cartel, and regarding how oblivious they are to American law.

Only a new social network can disrupt the social tech cartel, however it is a huge undertaking that requires business skills on all levels.  Just the technical and business challenge alone is substantial. Any entrant must be ready for severe attacks via media, financial and legal channels.

Introducing Donald Trump’s Truth Social Network

Donald Trump’s business team (Trump Media & Technology Group) has announced Truth Social, a new social network to compete with Facebook and Twitter. It has no online presence, not much of a business model as yet, nor is it a platform either. Donald Trump won’t be the CEO. Hackers did manage to find and disrupt an IP address and server being used by the developers. The professional hackers haven’t even started yet.

It’s said to launch in November and they have an app in development. It seems laughable until you realize they are raising money. They might bumble through development but this is grand opportunity to not only break into big tech for big profits, but another service will shake up the industry and could bring more fairness. That means investors, media and politicians might support it.

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A company called Axios has been chosen to provide Internet infrastructure for the network and they’re building it out to accommodate 75 millions users.

“I created TRUTH Social and TMTG (Trump Media & Technology Group) to stand up to the tyranny of Big Tech,” Trump said in a media release.

The Hill discusses features and commentary in this video, including the different branches of TMTG:

President Trump has used a SPAC to raise capital funding and the price per share has rocketed. They aim to offer more shares. Of course, initial valuations might get way out of hand, to the ridiculous in either direction. The funding part is a little weird yet it may iron itself out in time.  But one thing seems certain, this company will be well funded, and it could make Donald Trump even wealthier (compensating for his crushed real estate empire).

TRUTH Social Is Valued at Up to $1.7 Billion — from Heavy.com

Almost half of the US population voted on the side of the Republicans and Donald Trump. They do not like or trust Facebook or Twitter and they’ll provide a huge userbase along with a pool of billions of advertising revenue.

That advertising revenue will disappear from Facebook and Twitter, which will deflate their “earnings” and push their stock prices down.

Next year when the network is launched, the movement of ad revenue to Truth Social will cause significant pain for Mark Zuckerberg and Jack Dorsey and their hedge fund investors. It’s a certainty, they will try to sink this new ship before it sails. We’ll see some creative attempts at sabotage, and this will help sharpen Trump and his business team for the rough road ahead.

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TMTG’s own survey seems to show a lack of interest, but this is initial interest. Initially, no one wanted to use Facebook or Twitter either. It could be few people take this seriously but as the network goes live, it will receive a good look. Given planning and preparation might be lacking, and attacks likely, the initial response might not be good.  TMTG has published an overview of its opportunity online.

Screenshot courtesy of TMTG Media.

Certainly President Trump wants to exact revenge or justice on Facebook/Twitter and it’s in his comments:

I am excited to send out my first TRUTH on TRUTH Social very soon,” Trump added. “TMTG was founded with a mission to give a voice to all. I’m excited to soon begin sharing my thoughts on TRUTH Social and to fight back against Big Tech. Everyone asks me why doesn’t someone stand up to Big Tech? Well, we will be soon!

Consider the Revenue and Reach Potential of a Major New Network

Dems media staff who mock the new enterprise point out the folly of Truth in its name, yet soon enough they, and investors will be surprised at the economic potential of any new startup social network site. This one has a big and loyal potential audience — Republicans and independent voters.

And if this network can grow and thrive, other startups are likely to attract funding as entrepreneurs begin to think there’s an opening for them. The belief that competition in social is futile will come into question. Big Tech will find it tougher to kill or buy out rising stars in the social media space.

TMTG’s document talks about all kinds of revenue and network opportunities but much of that is pie in the sky so far. If they manage this opportunity perfectly, then it’s reasonable they can tap into something very big. Elections coming in 2022 and 2024 will be a catalyst.

Screenshot courtesy of Truth Social and TMTG

This could result in yet another boom period for Silicon Valley and high tech companies in the Bay Area, Austin, Toronto, Boston, and Charlotte. Other jurisdictions such as Miami, Seattle, San Diego, and even Phoenix might see this as their big opportunity.

There’s no mention of where Truth Social will locate its headquarters but it likely won’t be California.

CNN Politics editor Chris Cillizaz says Donald Trump’s new social network is doomed to failure.” Showing a clear lack of depth in his analysis, he chides that a) Twitter already exists, b) the conservative social media space is too crowded, and c) that Trump isn’t President any longer.

He further claims that all networks aren’t featuring Trump in news stories anymore because he’s irrelevant, but not because they can’t make easy money off of him anymore.

That’s another big point to be made, that like him or not, he has been the center of news for at least 6 years. I hope he doesn’t run for President again, but this business move can be the catalyst we need to make the business world fair again and to clean up social media as a forum for the new fascism.

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Leaving Facebook and Twitter

A new network means Republicans won’t have to involve themselves with Facebook or Twitter, and it will be tougher for Demos to reach them with their messaging. It’s likely they will try to change the free speech laws to suppress him again. But it looks like the Republicans are likely to win the 2022 mid terms which means the Demos social media empire will take a hit.

Bumpy Road Ahead for Truth Social

TMTG has already taken its first hit, as it used the software owned by the Software Freedom Conservancy, who is demanding that Truth Social expose all its code to users/developers. It has 30 days to do so.

That might be risky for them, so TMTG might have to redevelop its own platform. This is just one of the bumps on the road that will pop up like land mines on the path to becoming one of the top social companies.

A business insider report suggests the current Truth Social interface looks a lot like Twitter, but we’d have to expect they will build it out into a Facebook like dashboard as the business potential becomes greater.

Jack Dorsey as Luke Skywalker

Once President Trump and TMTG realize the economic potential, retaliating against Jack Dorsey will take a back seat. This has $100 billion dollar potential.

It’s ironic that both Facebook and Twitter denied Trump’s access to their platform, and if they had given it, he wouldn’t have launched the rival network. Dorsey and Zuckerberg seem so arrogant, they can’t understand their opponent and his American loyalists. Trump is persistent and tenacious, and apparently determined too. The success of this venture will make him more so.

It’s uncertain whether Fox will give the network legitimacy, or give it broadcast visibility, but a tie in with Fox Business and Fox Entertainment might be very productive and profitable for Fox whose ratings have grown significantly while Demons media channels have seen severe ratings drops.

Big Funding Makes it Real

This kind of billion dollar funding will make Truth Social a legitimate contender in social media even though it’s being called a Meme stock by those hoping it will go away. With this much funding infused, this is going to be big, noisy, and will tap into a very loyal crowd — Republicans!

We don’t know what kind of folly and legal warfare will take place and how Big Tech will conspire to suppress Truth Social and stop it from growing, but the bottom line is the volume of people in the US and outside the US who will use this platform could make it fly.

If TMTG can keep ad rates just lower than Google and Facebook, and provide more reach, at least initially, it could severely disrupt the Big Tech oligopoly.

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On the other hand, the presence of another big social media site could force the DOJ to drop monopoly charges against Facebook. As inflation, oil and gasoline prices and taxes rise through the roof and debt ceiling dates get riskier, the appearance of an “I told you so, Trump media site” could be very damaging politically to the The President and its supporting media empire.

Truth Social could also be a Twitter alternative with no suppression of free speech and this could be extremely damaging to Jack Dorsey.

When Facebook and Twitter Lose Revenue

Facebook and Twitter’s executive team don’t understand the potential hit to their bottom line. Once launched in earnest next year, the loss in ad revenue will hurt FB and Twitter earnings and the company’s stock prices.

Facebook stock price is dropping due to whistleblower reports, end of pandemic stimulus, FB metaverse announcement, lower retail sector performance expected in Q1 2022, and new Apple privacy policies.  Here’s what’s happening to FB stock:

Screenshot courtesy of Yahoo Finance

Zuckerberg and Dorsey will probably fight back by easing organic restrictions in the hope to keep their users loyal. But Republican Americans (and worldwide) won’t be deterred. If this social/advertising network exists they’ll move to it and drop FB and Twitter.

The arrival of a new big social network platform changes the business landscape.

We don’t know what the network looks like, only that it’s going to draw billions of investment dollars and will be able to develop whatever services, apps, and revenue it wants to.

There will be plenty of developers lining up to offer their services to build the network out. It will take years, but it looks like this ship is being set in motion. It will fascinating to see how it plays out.