It's a well known fact that most targeted traffic comes from search engines including Google, Yahoo, and MSN.
Most search engine marketers agree that a keyword rich domain name can give you a boost in search results. You should at least have one Keyword. You might say that sites like Nike.com, Amazon.com and Ebay.com don’t have keyword rich names and you are absolutely right. One thing they have is branding and a huge marketing budget.If you don’t have huge amounts of money spend on advertising, then a major way to get an edge is by having a keyword rich domain name.
The first step before deciding on a keyword basied domain name is to do the research. Depending on your type of business and what industry your in the results can very. If the keyword term is very competitive then you should consider not using a keyword basied domain name because once a search term reaches a threshhold on how competitive it is, then just picking a domain name that is keyword basied will just not due. Chances are that if it is a competitive search term somebody already has that domain name registered already.
Now when it comes to local markets a keyword based domain name can give you a very competitive edge. Local search terms tend to be less competitive than global terms. Let's take a look at an example. I'm in the mortgage industry. Even if I had the chance to buy the domain name mortgage.com this would not help you in ranking because the search term is so competitive that it will not make a diffrence. Now if your in a local market say los angeles then you might consider a keyword baised domain name like mortgagelosangeles.com this could very well give you a boost in that search term. Maybe you based in pasadena which is a smaller city around los angeles. pasadenamortgage.com would be even a better choice and give you the best advantage out of any example so far. The rule of thumb to go by is that when ever your looking at a nich you need to think as specific as possible, as this will givve you the higest return on investment. It's also a good idea to do the research and find out if the search term even generates any traffic at all. Never assume this because this is not always the case.
What type of business are you in. Don’t be to general because the more you are the more competitive the search are. Let take a look, Let say my company sells dog shampoo, I would not want a domain called pet.com. Even though this has very high search results the conversion rate for this keyword and my company will be very small. So the number one mistake you can make when you pick a keyword based domain name is to be to generic. Even petshampoo.com is to generic. If your selling dog shampoo then you should pick a domain name that maches what your selling dogshampoo.com. This is a common mistake that a lot of people tend to make.
With that in mind you will be closer to deciding on your domain name. Don't get upset if someone already has the keyword domain name that you wanted. A keyword based domain name is not always the only answer. This should be used and chosen only with proper research in mind.