Subdomains are good for SEO rankings. They help you enhance your chances of ranking in the search engines for a single website.

SEO Theory contributor Michael Martinez ha published an article explaining subdomains and how to use them for SEO.

He says, “Every time someone says subfolders are better for SEO than subdomains, Wikipedia laughs all the way to the top of the search results. Laughable as the subdomain-versus-subfolder argument is, people still wage war against subdomains with the most nonsensical of arguments. Now, I’ve addressed those flawed in past articles, so I’ll cut to the chase with this one.

Subdomains are not for the faint-hearted. They are for crowd-sourcing sites (like en.Wikipedia.org), large Websites (like money.cnn.com/business), Web hosting sites (like Blogspot and WordPress), personal blogs (like blog.michael-martinez.com), corporate blogs (like blog.adobe.com and blog.twitter.com), and just about any other purpose you can think of.

If you can’t handle any of those kinds of sites, you can’t handle subdomains. There’s no shame in admitting defeat. But rest assured, every SEO strategy you can devise for a subfolder works equally well for a subdomain. Search engines don’t care if you’re using subdomains or subfolders”.

Subdomain SEO: How to Create a Successful Subsite

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