Well, I guess this is good news for new sites if your market isn't too competitive and you can get links quickly.
I have noticed an interesting trend in my market: an authority site is building mini sites to capitalize on its ranking power. For instance, say they have a site about football, they are making sites about football helmets, football gloves, etc.
It appears to be working as they are occupying the top three spots for google in almost all keyword searches related to them. The top position will be their main site, and then the 2 and 3 position will be new domains they have created. Can you occupy the top position with specific pages on one domain when a particular phrase is searched or will google only give you one spot. I guess it is a powerful strategy as the user doesn't know that the top three sites are owned by the same company. Its a good idea, but it seems that your efforts then get spread over many sites and some type of diminishing returns sets in.
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