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Bob Hawkes

Domainer Interview: Joseph Ciprut, the Cognitive Master

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By Bob Hawkes, Aug 26, 2020
  1. Bob Hawkes

    Bob Hawkes Top Member NameTalent VIP Gold Account Trusted Blogger

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    In August 2016 many in the domain industry were bidding in expired auctions, searching the closeout lists, creating brandable names, speculating in new or repurposed extensions, and chasing elusive single word or very short .com names. Joseph Ciprut was taking a somewhat different approach.

    JosephCiprit.png

    Joseph uses extensive research to guide hand registering names, particularly those from emerging technologies. One name he registered in August 2016 was CognitiveAutomation.com. His approach recently paid off with the $300,000 sale of that domain name. The purchase is being made over three payments.

    With a curious mind, degrees in both psychology and business, and employment as a market researcher and branding specialist, Joseph has a strong base for selecting great names. One area of particular interest to him is the intersection between cognitive processes, artificial intelligence, and automation.

    While many aspects of the name, sale and negotiation process are fascinating, possibly the most significant is that category-defining domain names in the business-business sector can fetch stellar prices. These category-defining names bring to the holder the respect of owning the domain name that defines an area.

    I reached out to Joseph, and he generously shared his approach, as well as more about this specific name and sale.


    Who Is The Buyer?

    The domain name is already in redirection use by the buyer, Aera Technology. It redirects to their existing website AeraTechnology.com. From their website, Aera understands how your business works, makes real-time recommendations, predicts outcomes, and takes action autonomously. The private company AERA Technology operates from 9 offices, with between 251 and 500 employees currently according to Crunchbase. In 2019 the company raised $80 million in series-C funding. Total funding raised to date is about $173 million. They hold a number of trademarks within the cognitive automation field, including Self-Driving Enterprise and Cognitive Operating System.

    They do not own their direct match AERA.com which is used in redirection by AERA Energy. The .net is used by the century-old American Educational Research Association. The .org is in use by an engine builder association.

    It is interesting to me that the company invested in the category-defining term, rather than their direct business name. It would appear that their immediate plans are redirecting the name to their existing two-word .com. The other direct match to their company name Aera.technology has a coming soon notice, and, from DomainIQ data, seems to be held by the same owner as aera.org.

    Joseph had this to say about the company and their domain name acquisition.

    A New Era For Category-Defining Technology Names?

    While there is no doubt that this sale will propel interest in cognitive, artificial intelligence and automation domain names in general, more specifically I wonder if it will set a precedent for technology-related category-defining two-word domain names at elite prices.

    When mention is made of exact match names, most first think of consumer products and services, and the search engine boost that may, or may not, come from owning such names. The term category-defining is often associated with broad consumer services or products, such as insurance or pools.

    In the case of CognitiveAutomation.com, we have a category-defining domain name that is a narrower area, and one where the target audience is businesses as opposed to consumers. In this case the purchase of the domain name is primarily for industry respect, rather than for search boost, I would think.

    Joseph described the benefits of owning the category-defining domain name this way.
    He went on to add

    What is Cognitive Automation?

    This recent article on cognitive automation says
    It goes on to differentiate cognitive automation from robotic process automation (RPA) and machine learning.
    The idea of using unstructured data is key to most implementations of cognitive automation.

    Joseph shared statistics on the economic importance and growth rate of cognitive automation. The field is predicted to reach close to $16 billion within 5 years, with a compound annual growth rate of over 12%. This growth rate is likely to increase, as the COVID-19 crises causes companies to automate at an increased pace.

    Aera Technology is sponsoring a virtual Cognitive Automation Summit in September 2020.

    A few years ago the Deloitte Insights Review had an overview on cognitive technologies, a broader topic than cognitive automation.

    NickB started a thread for NamePros members to share cognitive domain names they own. That discussion also includes additional background on the field.


    Two Words Can Be More Powerful Than One

    While a single word domain name can have much broader application, that also will limit how precisely it targets a niche.
    Joseph went on to add the following.
    In this case cognitive as a single word is powerful, as is automation of course, but both of them are very broad. This is how Joseph describes the combination.

    Rethinking The Lander

    If I told you someone was trying to sell a 19 letter, 2 word, 7 syllable domain name without a buy-it-now price and without a lander, I think many would consider the approach unwise. However, that is exactly what Joseph did with respect to this name. It had no lander. He cleverly forwarded the domain name to Google search results for cognitive automation so that anyone who entered it into a browser would see an up-to-date list of articles and sites on the topic. The buyer reached out to Joseph through his LinkedIn profile.


    Joseph’s Portfolio

    Joseph recently shared on NamePros some of his domain names that include the word cognitive. There are many great names in that list, names such as CognitiveAssurance.com, CognitiveAutomationSystems.com, CognitiveCulture.com, CognitiveDesk.com, CognitiveDisruption.com, CognitiveInnovation.com, CognitiveMindset.com, CognitiveServices.com, CognitiveSentry.com, and CognitiveSummit.com.

    I asked him to expand on the list of cognitive names, and share some of the other niches that interest him.
    Among automation-related domain names he holds are AutomationSentry.com, EmergingAutomation.com, MarketplaceAutomation.com and SequentialAutomation.com.
    He has a number of branding-related names such as BrandKingdom.com, BrandMystery.com, BrandQuiz.com, YouthBrand.com, HipBrand.com, WinWow.com, and IdeaCreation.com.

    A few of his contemporary holdings are NewEraSocial.com, Remoteism.com, VeryHappyAtHome.com, and ShoppersAtHome.com.

    His total current portfolio is about 650 names, of which more than 450 were hand registered. The vast majority of his names are .com.


    The Negotiation Process

    There are many different negotiating styles, but in this case there seemed a perfect match between the buyer and seller. A research driven, respectful, flexible and unhurried approach, on both sides, helped. The overall negotiations took about four months.

    One of the aspects that most struck me is he seemed remarkably calm, considering the amount involved. His attitude was if the deal did not complete, it meant that it was either not the right time or the right buyer, and he still would have the high-value name if he had to wait for another day. He did not disclose details, but had previously turned down offers from a couple of huge technology companies for other names in the cognitive area.

    While the NDA did not allow the release of details, in addition to the direct sale price, some equity in the company was also included in the deal. Ongoing interaction with the company in a consulting capacity is a possibility.

    The deal also included a company T-shirt. Demonstrating his tough negotiating stance when required, Joseph held out for two T-shirts, one for his son too!

    Joseph shared with me his insights and advice regarding the domain name negotiation process.
    The Domain King, Rick Schwartz, approved of Joseph’s negotiation style, writing on Twitter

    Advice to Domain Investors

    I asked Joseph what advice he would offer, based on his own experience, for domain investors. Here is part of what he shared.
    1. Search the intellectual property databases to prevent potential legal and financial complications and to make sure the terms you are considering have not been trademarked or come close to infringing on existing trademarks.
    2. To be able to hand register or buy technology-related, category-defining terms smartly, it is crucial to know what categories there are currently before you start registering what you think are category-defining terms.
    3. Invest in sectors you know about, those that interest you and you are curious about.
    4. Look at intersections of those sectors that gets augmented by technology. That is the sweet spot.
    5. Also, double check your spelling before registering!
    6. To know what is in the horizon, you need to perform a lot of desk research, read vertical online sectoral publications, create Google Alerts for specific key words and phrases, pushed to you a few times each day.
    7. Allow certain words, phrases, concepts to appear on your radar screen and if one of them generates a spark of interest, dig further to uncover a gem.
    8. Stick with dot coms, but some dot tv and if you know the language and market, with a few select dot .de, dot co uk or dot ,nl. Still, best to think global, not local.
    9. Research enough to know what is in the horizon, and a bit after that. Be curious, then check facts through several sources to verify them.
    10. Remember, it may take a few years before the term becomes popular, or it may never be popular. Diversify and be prepared to invest for the long run.
    11. Do not expect overnight success, but if you identify a word or term that gets ‘hot’ very quickly and you can foresee that at the very beginning to register the domain name before anyone else, a good payday could come sooner. It is a calculated risk.
    12. If you are averse to risk, then domain investing would frustrate you too much. In any case, invest no more than what you are prepared to lose.
    13. Remember, domain names need to be re-registered each year. How large a portfolio of domain names can you carry and for how long, without any returns? Think about that, hope for the best but be prepared for the worst.
    14. Hold on to the technology-related category-defining terms you have registered, but with the full understanding that technology is very fluid, very fast moving and something new is just around the corner.
    See also his advice in the preceding section on negotiating the sale.


    Final Thoughts

    Joseph has been a NamePros member since 2011, and his handle is domainsterr. He is also active on Twitter and The Domain Social. He recently posted that he planned to be much more active on NamePros going forward, and that is indeed good news for all of us.

    Joseph did a one hour interview with Josh Reason in a podcast (see episode 94 at Josh.co. That interview provides additional details about the sale, buyer, strategy and negotiation process.

    Joseph is clearly a deep thinker, and I think we can all learn much from his reflections and approaches. Sometimes it is too easy in domain investing to fall into looking at all of the metrics, and I sense in Joseph someone who really looks at the beauty and utility of the names beyond the numbers. That is not to say that research was not critical in propelling that possible name to a place on his list.


    The domainer interview series introduces readers to domain investors who have enjoyed recent success. The goal is to introduce the people behind the sales, and to share their insights and approaches.

    Sincere thanks to Joseph for this interview, and so clearly and eloquently sharing his in-depth reflections.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
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  4. Bob Hawkes

    About The Author — Bob Hawkes

    Domain analyst, writer and informal educator, with particular interests in domain name phrases and non-business uses for domain names. I am a risk averse domain investor who only invests modest amounts in a variety of extensions and niches. Don't hesitate to contact me - I like to help!

    This is Bob Hawkes's 54th blog post on NamePros. View all blog posts

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  5. Comments (21)

  6. domainsterr

    domainsterr Established Member

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    Thank you, Bob, for writing such an eloquent and informative article about thoughts and facts I discussed with you. I appreciate your sharing so much of it with your readers. Also, for showcasing a few of the names in my portfolio.

    If it shines a bit of light on a more practical, mindful, research based approach towards investing in domain names, I will be happy. It is a phenomenal, multidimensional business and I am grateful to be in it!

    Sincerely,
    Joseph
     
  7. Brands.International

    Brands.International formerly lolwarrior VIP

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    Amazing and very insightful article Bob, thank you for that :)
     
  8. oldtimer

    oldtimer Do some good for humanity and the environment VIP ★★★★★★★★★★

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    Congratulations to the seller, and thanks to Bob for another great article.

    When it comes to specific technology related terms like "Cognitive Automation" you can almost know for sure that you are dealing with a company that operates within that field and that can give the seller a big advantage in the negotiations as far as being able to set a high asking price.

    It's important for newbies to realize that just because a category defining domain like Cognitive Automation sells for high prices it doesn't mean that every random keyword that is combined with Cognitive is going to become valuable, you have to do a lot of research to find out exactly what keyword combinations are the best for any given technology.

    Also to put it in simple terms Cognitive Technology is a subset of Artificial Intelligence that deals more with mimicking human behavior in contrast to other branches of AI that are designed to out do humans, so before registering a bunch of domains it might be best to educate yourself about the area of technology that you want to register domains for.

    IMO
     
    Last edited: Aug 27, 2020
  9. unmark

    unmark Established Member ★★★★★★★★★★

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    Great article, and as always, very informative. Thanks a lot for that.
     
  10. Bookman334

    Bookman334 Upgraded Member Gold Account

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  11. jmaurya

    jmaurya Top Contributor VIP

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    Fantastic article . Thanks Bob for sharing.
     
    Last edited: Aug 27, 2020
  12. topdom

    topdom Top Contributor VIP

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    If I owned it what would happen, I would list it at Sedo, someone would start with 50, I would counter 5K, he would stop at 150 or offer 500 and say this is my final price, then one of these would happen:
    accept it,
    start an auction,
    cancel and add 1500 BIN
    ..knowing that I'm dealing with a flipper connected to another registrar or a marketplace, and I have no way of contacting the real buyer. Outbounding emails would be totally ignored. Then, noone would buy, I would let it expire, hoping I would renew it 1 day before redemption,.. and forget about it, and my registrar would grab or auction it, and there would be no second change to hand register it.. If I renew it, .. the same story repeats, no bids,.. And do it if for thousands of domains, there is negative profit.
    I allowed a domain to expire because I forgot June is 30 days only,.. and it was dropcatch'ed by someone, why, because it had price request on it at AN .. but asking price is only 100 now (stop dropcatching !).
    I see lots of activity in domain business, but not on selling side, instead of renewing for 9, I let them drop, to buy again maybe for 6. Flippers kill this business, and marketplaces help them. But if you have a few great domains you are in control, no renewal problem, no lowballing and unpaying flipper problem.
     
    Last edited: Aug 27, 2020
  13. Bipul

    Bipul Established Member

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    Great, informative article! Thank you.
     
  14. kandyan

    kandyan Established Member

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    Congrats Joseph! That was a nice sale.

    And thank you Bob, for great informative article ,as always...
     
  15. Ostrados

    Ostrados EpicName.com VIP

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    Great inspiration!
    He shot for mars instead of the moon...
     
  16. Ostrados

    Ostrados EpicName.com VIP

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    I had a domain sold to a company that does not match the company name but matches the name of one of their projects. So yest big companies do register names for their sub-projects sometimes.
     
  17. WatchDogue

    WatchDogue Top Contributor VIP

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    What an intelligent and well targeted approach to successful domain name acquisitions and sales!

    Appreciate the read into the mindset of Joseph Ciprut and his well reasoned and researched portfolio holdings.

    He obviously " swam against the conventional domain name tide " registering names with a bit of length and he was proven correct in his assessment of his name's worth in the marketplace, the place
    with the only opinion that matters.

    Thanks Bob for providing the Forum with a great interview and thanks of course to Joseph Ciprut for sharing his views and insights into his domain name endeavors.
     
  18. FolioTeam

    FolioTeam AMDB.tv VIP

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    Thanks Bob. What a fantastic article.

    Emerging tech is the way to go if you want to handreg at all. However, there is always a 50/50 chance attached to emerging tech.
     
  19. Haykay2005

    Haykay2005 Top Contributor VIP

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  20. Mytz.com

    Mytz.com Top 4L Sellers IEIE.com CUTU.com KKIK.com HRAD.com VIP Gold Account

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    Congrats
     
    Last edited: Aug 29, 2020
  21. Mike Goodman

    Mike Goodman Established Member

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    Thank you for this, @Bob Hawkes and @domainsterr, thought provoking and fascinating.

    My own ponderings over time have included how rigid to be about following the mantras of short, dotcom, etc etc etc. I may be new to domaining but my experience as a webmaster tells me a name either has to be something a potential client will search on, or at least be a part of it, or be developed by excellent content, marketing and PR into a brand which will be searched for in its own right.

    It is exciting to receive confirmation from the two of you. Not to ignore the mantras. Cash flow is and always will be king. But that it does actually make good sense to add to those with some well researched potential gems.

    Stepping slightly sideways, yes indeed it is a higher risk to go for narrower sectors or niches. But in b2b each and every prize (new client) has a far higher value than in b2c. Especially for goods or services which of themselves are high value in the first place. So it is well worth their while to dip into the funding rounds pot to pay a higher price for a security, in this case a domain, which will facilitate more prize wins.
     
    Last edited: Aug 30, 2020
  22. jim h

    jim h Upgraded Member Gold Account

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    A very enlightening article. Thank you for sharing.
     
  23. blogspotter

    blogspotter Top Contributor VIP ★★★★★★★★★★

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    Saw this on twitter.
    I shortlisted a few names and there are a lot of areas where there have been breakthoughs and papers, but they are all very long names. Seeing this made me register CognitiveProjectManagement and CognitivePM

    Another that I regged earlier was PricingAutomation

    Surge pricing and ML assisted dynamic pricing is already the norm, so there might be players already that specializes in this. Maybe I will need a little outreach too :)


    robotic.png
     
  24. Omar Negron

    Omar Negron Top Contributor VIP

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    Great article...thank you!
     
  25. Indianad

    Indianad Upgraded Member Gold Account

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    Excellent! Thank you Bob.
     
  26. PapaTama

    PapaTama Established Member

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    thanks for share bob
     
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