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Subdomains-or-Folders

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Subdomains or Folders
Webmasters are divided on which is best, a subdomain or a folder. The answer lies in content separation. Whilst search engines prefer large, rich content sites facilitated by a folder structure, they index a subdomain much easier than a fresh site. What is the goal?
The search engines see a subdomain as a different site - so if the content is a clearly separated subject, then you can facilitate easy indexing by the search engine if you have a subdomain rather than a new domain. You'll also be making the original site more clearly defined in it's subject area. This is at the expense of something the search engines love - a large rich content site. You'll lose that by taking content away to the new subdomain. If the subdomain is related to the subject in the main domain - the course of wisdom is generally to introduct a folder to extend the existing site. The sum of the single site is in this case greater than the sum of it's parts. However, when a site reaches a size such that it would be regarded as a large site, why not create a subdomain with weight lent from the parent domain for better web traction? It makes sense.
There was a story circulating in early 2006 that some billions of pages had been quickly indexed by Google by the owner introducing subdomains. This alerted webmasters to the idea of introducing subdomains rather than an internal folder structure. However this missed the point somewhat - new folders would have been indexed just as quickly within a site trawled regularly by Google or any SE. If the subdomains had been genuine in terms of content (they were dynamically created taking content from elsewhere) they could have been subdivided such that once reaching a critical mass of size, new subdomains could be created. The decision should be made on the basis of information and size.
There is no advantage in creating a subdomain over a folder if the information presented is not distinct. Google views it as a new site - some obvious benefit from the parent, but to the disadvantage in most cases of not developing a large trustworthy site for search engines to reward as a site that must present information on the subject.
Further Reading: Folders vs Subdomains | Forum - Case for Subdomains


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