Will There Be a Market Correction in 2016?

There are quite a few areas of the domain market that have been on fire lately. Numeric domain names of all sizes seem to be on a tear, and short domain names in general have been selling rapidly. Even non-.com domain names have apparently been selling quite well of late.

There has been talk of a domain market bubble, and various people have been sharing their thoughts on whether the market continues to stay hot or it goes down. Frankly, I have no idea. I am not making a lot of purchases based on the current state of the market, but I am positioning myself to make money regardless (my recent buys include QQQQQQQ.com, Travels.com, BoatRental.com, SSSN.com, and PRRR.com).

2015 is nearly finished. It’s been a fire year for many, especially the domain registries and domain registrars. I am curious if you think there will be a domain market correction next year. I have no idea, and I am curious about what you think. Vote in the poll below and feel free to share your thoughts in the comment section.

Elliot Silver
Elliot Silver
About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has closed eight figures in deals. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest. Reach out to Elliot: Twitter | Facebook | LinkedIn


  1. I voted no on the strength that if their is a broader financial markets correction in any way next year, as some commentators are now suggesting, domain names represent a form of “gold standard.” The apparent appetite in Asia for names, particularly underwriting .com’s valuations, still supports this argument internationally.

  2. Market correction is putting it lightly. It’s going to be like a nuclear blast went off. Forget about someone holding the bag because there will be no bag left to hold. It won’t hit early because of all these new registrations. October or November of next year is when all this new junk won’t get renewed and the market will implode.

    • I think you are right. If on October and November of next year most of these new registrations don’t get renewed then it will mean the bubble has pupped.

  3. A market correction can happen anytime, especially in medium not .com or very long .com , but shorter ones? No. I remember being told that numbers were no good many years ago and ever since… But I had the last laugh. 🙂

  4. By the way, by market correction I mean a drastic one… Those who buy smartly have nothing to fear. I couldn’t care less if I don’t sell, short or memorable .com names are valuable by themselves and there will always be demand for them, even if not by investors.

    • I agree. Domains that were worth investing in before this craziness started are still worth investing in. Everything else is junk. Some will say these long numbers are good investments just so they can continue to ride the wave until the water is gone.

  5. Too early to start talking about a market correction IMO.

    It just truly started this past month.

    Lots of new interest. People are not factoring in the amount of new investors wanting into the space. China is obviously exploding and India is barely starting.

    People say 1M 6N domains are too many but really that’s only 2,000 domains for 500 people. It’s a very small number.

    For all those wanting in at a lower entry level, registering domains is how they get in.

    The bubble will certainly burst at some point. That’s a fact. The real question is where will it settle afterwards.

    Lots of $$$ to be made. Get in and get out, rinse repeat.

    • This very good comment above should give some insight in why there won’t be any market correction, at least not short to mid term.. longterm it will of course be inevitable.. but don’t underestimate the masses of new investors pouring their cash into these niches, keeping them well oiled for a longer time to come.. minimum 3-5y, if not longer..

      mark my words and don’t blame others who rushed in instead of sitting at the sidelines like you naysayers..

  6. There is to much risk for non educated western investors to play the numeric side.

    The market is about perception, you have GTLD guys telling you this is the future, blah blah

    You have numerics that cost more than houses, it is getting a bit irrational.

    I had several 4/5N .com’s that sat in my portfolio for years, last year the 4N starting getting lots of bites, this year the 5N is getting so many spammy offers, I did not even think such figures would be possible, until I saw them confirmed in the aftermarket.

    I have decided to take 75% of those investments off the table

    1/3 to offline investments 1/3 invested back into keyword domains 1/3 cash

    I probably sold to soon, but I am satisfied, honestly I didn’t think 7 5N’s could buy me a Tesla last year, but it did. I have 2 left, my best 2, will try to get a nice vacation condo with those, hopefully by next year.

  7. For Numerics and Short domains, I do not believe there will be a correction. Quite the opposite. The Chinese have just started getting into this. Considering the population, there are hardly any Chinese investors that are buying Domains! If you think you are getting alot of offers now, wait until the Mainstream Chinese investors come aboard.

  8. I voted “No”. I believe there will be no correction in 2016, or AT LEAST not before end of October. However, I doubt it will be anytime in 2016. I am talking about .com only. Up to LLLL.coms and 6N.coms. 6N.com space is probably the last complete buyout in .com if we look just numbers or just letters (not mix).

  9. I don’t see an end in site. Domains Names are such powerful Internet real estate and investment assets that offer so many plus sides that far outweigh any downside risk if purchased well priced and with quality attributes.

    I see in the years ahead they will get more and more recognition and accolades as solid investments and that attention will draw in millions of new collectors / investors.

    Domain Names have the highest ROI potential compared to any other traditional investing asset class I’ve ever seen.

  10. Back in July of 2014 when Giuseppe has a post “Are we in a bubble”?

    I predicted that we are not in a bubble.
    Here’s the post: http://www.domainholdings.com/are-we-in-a-bubble/#.VkVKu4T4tHg

    If you read that article you will see that Berkens was offered $550k and he sold it 8 months later for $800k.
    I still think if you stick to .com up to 10 digits in the long run we are going to do well.

    China’s telephone land lines are into 8 digits +area code 2 digits and cellulars into 11 digits + area code.
    Look at this guys e’mails: 1071941215@qq.com 1174411614@qq.com etc…This guys are use to long numbers

    I do have a feeling that .co will come from behind big time and surpass .net.biz.club.link etc…in value.
    Just because .co is so generic. That is the reason why i positioned my self in the LLL.co market so well.

    My take is, stay with com up to 8-10 digits depends on the pattern.
    If next year %73 will renew the july-november .com’s it still going to be fine.

  11. fact is these kinds of domains can’t go up forever. eventually there will be no where to sell to. when will that happen? a year and a half to two years is my guess. 2-5 numerics will hold value..5’d will take some hit but still be valuable the rest will fall away. its just not possible to sustain a constant increase in value.

  12. I personally, believe If on October, November or any other month of next year, most of new TLD registrations don’t get renewed, then, will mean that dot com remains king.


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