I have a client with a website on a 4 yr old domain with decent toolbar pagerank and back links for their industry. The website contains information on two discrete service types they offer, and they want to seperate them into two sites. Because of the domain age it was recommended to them that they break the service content into two subdomains, i.e. service1.domain.com and service2.domain.com. Domain.com would still contain some general company information. The questions I have are:
1) How effective will the PageRank transfer be from domain.com to the subdomains?
2) Will the domain age be inherited by the subdomains?
3) How much of a factor will the "service" keywords in the subdomains be in ranking?
My inclination would be to keep one service on the main domain, and create a subdomain for the second service.
Another think I am thinking about is to 301 redirect the main domain to one of the subdomains
Any thoughts about what might be the best way to proceed?