Many clients have asked me about various technical SEO issues. These issues are related with domains, use of sub-domains, sub-directories, canonicalization, 301 redirects, 404 error pages, hyphen Vs. underscores in URLs, doorway pages any many others.
I want to discuss all these issues (in subsequent posts) with all of you to find out the best SEO practices in technical terms.
Today, I am discussing about one very common issue i.e. use of Sub-Domain or Sub-Directory.
Before going further I would like to define: Top Level Domain (TLD), Subdomain and Subdirectory.
Top Level Domain Name (TLDN): In www.google.com URL, com is the TLDN i.e. the last part of internet domain name (here, domain name is google.com). In case of www.google.co.uk your TLD would be uk. The uk domain is also referred to as a country-code top-level domain or ccTLD.
Subdomain: Subdomains are basically parts of the main domain. You can define it as a part of domain name hierarchy. For example:
In video.google.com, video is the subdomain.
Subdirectory: Subdirectories are basically defined as the folders in the root directory. For example: In http://desktop.google.com/plugins/ , plugins is the directory.
So, http://desktop.google.com/plugins/ in this URL:
Com is the TLD
Desktop is the subdomain
Plugins is the directory or subfolder
Now, we come to our main discussion i.e. why subdomains & why subdirectories?
Subdomains are used as separate domains by major search engines. See the results below for the search query seochat:

(You might know that Google shows 2 relevant results from a single domain)
Here, you can clearly view that Google is showing 2 results from forums.seochat.com/.
Subdomain should be used when your site is very large and you want to market some of your unique product or content thru different URL. For example: if your site has 1500 pages and you want to market your content/services/products thru different URLs with an appealing & relevant subdomain to popularize it, as in case of seochat. In forums.seochat.com; it is clearly understood that forums is a part of SEOchat which is used to discuss SEO related things.
So you can devise a subdomain strategy that would help focus certain areas of the site to help them market or compete individually.
For example:
Google uses many subdomains for its different product & services like maps.google.com/, video.google.com/, earth.google.com/ and many others.
Once any of your subdomains get enough link popularity, you can transfer it to other domains or main domain of your site to get them benefited by this.
Now, we will discuss directories. Directories are always the best choice for all as it has all the functionality & flexibility of subdomains and it is easy to manage. Subfolders are considered as the part of the domain as a whole. Search engines treat them as the content is coming from the same domain. But beware!! Don’t use lots of subdirectories in to directories because content that resides in subfolders is given a lower priority that content that resides in the root of a website. The deeper down in subfolders e.g. ‘example.com/google/website/seo/link/oneway/…’ that content resides the lower priority it gets from the major search engines. Do not go deeper than 1 or 2 sub folder from the root folder of your website.
This is according to my experience so far; however you might know something else which I did not mention or you feel should be included, so have your saying by leaving the comment. Even your opinion is also welcome. I will appreciate your response as this will also help others to solve their SEO dilemmas.
