Based upon work with our Internet Marketing firm’s client base, I’ve discovered that creating content and links on an existing domain far outweighs the benefit of creating a new site - even if the site’s content is more relevant.
When targeting a new keyword remember that it makes more sense to generate a new directory/page on an existing site (Site A) with good PageRank than it does to create a completely new domain and site (Site B).
Even the eventual links from Site B to Site A aren’t worth the credit Site A will get for having deep links.
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