Exact match domains still work??
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I'm sure this has been asked and it also has been answered but I'd like some insight from another SEO as to why this site -> <cite>www dot newhomesglasgow.co.uk/ </cite>
is ranking on the first page for the keyword(you guessed it) 'new homes in glasgow' OSE shows about 4 backlinks. Is it just the content on the page(that's jammed with keywords) and the matching URL?
Any feedback would be appreciated

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yes they do, but i have heard it said the do not work as well as before, but still work well
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Yes, still has some weight. Although if you're looking to do this for several dozen terms, your efforts may be better off really focusing on your primary domain, with great landing pages for New Homes in Glasgow. e.g. site.com/new-homes-in-galasgow with great on page content and optimization, plus any links you build to that page will benefit the domain.
I think micro-sites with exact-match domains have their place, but also feel that can end up being more work than expected. Just need to balance out your goals and see if it's the right strategy.
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Exact match keywords have a slight advantage in the rankings.... and as Alan has pointed out the advantage has recently been reduced.
I own a few exact match domains and believe that they are really good for SEO and for conversions.
Maybe you should find the people who own this domain and buy it from them?
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I don't think they will be selling it, since I've noticed LOTS of the same thing all owned by seemingly the same owner. It's just a little frustrating when such generic sites rank on the first page - but I guess this should just server as more motivation to beat them.
Such as http://www.newhomessurrey.co.uk/ http://www.newhomesglasgow.co.uk/ etc etc
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I definitely agree with the keeping focus on one domain - it can just be frustrating seeing low quality sites with pretty much no banklink profile ranking on the first page.