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Most definitely YES. From a search engine prespective, rug-rats.com can give hits for "rug" and "rats", but rugrats.com will just get hits for "rugrats", but not "rug" and "rats". Search engines can't parse words in non-hyphenated domains. And if Google did try, webmasterworld might be seen as a site where people on the web gather to plot world domination. ;)
You might argue that Google should put less weight on the domain name. But then what *do* they put emphasis on? If on page text, instead of getting keyword1-keyword2.com people can just create a spam page laden with keyword1 and keyword2. It costs more to have to buy a domain and get hosting than create a page spammed with keywords. Any search engine algo can be spammed if it can be figured out.
I usually promote hypenated domains on SE and recommend my clients to buy non hypenated (or with common misspelled) domain names for the same site.
Also, hypenated domains names are easier to read, non hypenated ones easier to hear.
Hypenated domains are not necessarely spam domains.
Check just about any web page and you will see several instances of the domain name actually on the page, often as text between header tags and as text links. Perhaps the hyphenated domain keywords are just being swept up as "relevant" page content - a little bit of SEO serendipity.
I could even go so far as to suggest that the reason people hate them is because they come higher up in the results than their own sites. But I won't do that. ;)
I've got no problems with them- as long as the content isn't spam then why shouldn't you have a keyword rich domain name?
The title of this thread "dash=trash" is extremely short sighted and in my opinion, total nonsense.
I don't think that domains with a hyphen in them could or should ever be branded 'spam domains'.
Domain names get rarer each day - with so many domains registered, it's an opportunity to get a decent and descriptive domain name and this will always be the case as more and more domains get used.
Before anyone asks:
Yes, one of the domains that I manage has a hyphen.
Yes, I agree that some domains with MANY hyphens "look" a little odd, but you can't judge if a website is spam purely by looking at the domain name.
I could even go so far as to suggest that the reason people hate them is because they come higher up in the results than their own sites. But I won't do that.
I will :)
Keep in mind, that those that like to optimize content for search engines are more likely to purchase these types of domains - whether or not they really help.
You are more likely to see these do better, because of this. You are also more likey to see them get banned (for "over optimization"). Of course - you don't see the ones that get banned - so the ones that are left are what you see.
This does not mean that the dash helps.
Just as you probably are more likely to see some sites ranked high that link to google.
People will try whatever they think might works - if they get 5 out of 6 right - whatever else they have used comes along for the ride.
I think having the keyword in the url helps, but I am not sure that:
www.example.com
is better than
www.foo.com/example.htm
But I don't think it hurts - and certainly I would rather have the former than the latter.
Just my 2 cents...