Ok so I've been habnging around here for some time and post here and there and have done quite a bit of digging here over time.
While I have seen similar threads I haven't seen one that exactly covers this idea.
It is something I am starting an experiment on but I do not want to destroy my rankings in the process so is both an idea but also a question as to the wisdom of said idea.
Here's the gist of the idea:
I have a site called industrytype-widgets.com which ranks okay for a number of industry related keyword searches but mainly is a ppc driven business.
within industrytype-widgets.com I have all sorts of categories and subcategories of these widgets so I decide to take some of the best keyword searches and turn them into domain names such as bluewidgets.com, redwidgets.com, purplewidgets.com, etc. I then take those domains and point them directly to the pages of my site that have blue widgets, red widgets, and purple widgets.
This in my mind does a couple of things:
1: directs highly targeted type ins to the correct widget pages
2. Serves me very well for adwords
3. Makes it extremely easy to have nice easy to rmember links from website owners who are agreeable to lining your site
4. Makes it quite easy to give out the address for those who are interested specifically in seeing your specific subproducts over the phone or via some other verbal communication.
All other benefits I see fit in those categories in one way or another.
Now the only possible drawbacks I see here other than cost (which if buying the correct domain names for products that are marketable should be no problem) is that maybe the search engines will give you a dupe content penalty or take it as spam.