Google penalizing keywords in domain?

What is the general consensus on this...

[Chris_1]

It seems to be like there used to be SEO value in having a domain with your keywords in it, for example, a boot company primarily targeting the keywords "blue widgets" to buy the domain:
www.bluewidgets.com

I'm starting to think Google has removed any value from domain name keywords and perhaps even has instituted a penalty against such sites. I'm thinking that, as the site grows, has new incoming links (especially with DMOZ & Yahoo listings), and avoids spam penalties, the "keyword in domain filter/penalty" starts to be lessened.

Is that how it appears to others?

Thanks,

Chris

[rich42]

from what I read regarding all the new over-optimization penalties - the real trick is -not- to include the keywords in your domain name, on the page, or in any links to your site.

sarcasm aside - from what I've seen there's still very real value in having your keyword in your domain name.

if nothing else - you're more likely to get anchor text from other sites including those keywords - ie:

<a href="http://blue-sprockets.com">blue-sprockets.com</a>

(edit - fixed typo)

[edited by: rich42 at 11:10 am (utc) on Mar. 2, 2005]

[irock]

Could you please link me to the "Over Optimitization Penalty" discussion?

[arran]

irock,

Seems like the majority think it's a myth:

[webmasterworld.com ]

[webmasterworld.com ]

[Longhaired Genius]

In my experience google is definitely "penalising" sites with keywords in their domain-names/anchor text at the moment.

I have a small site that is the ultimate in uncompetitiveness. It is the only site on the web with its information (nothing esoteric, just some collected local data). Its domain name and most of its anchor text links are the most likely search term. From its inception until update allegra it sat at number one for that search term; now it is number 22. Of the 21 pages above it, 12 contain a link to my site, the rest just mention the term in passing, with little or no actual information.