Exact domain or subfolder?

[mnipko]

If I am targeting a specific keyword, from an SEO perspective is it better to create a subfolder on a url that has some authority or is it better use the exact domain with no authority?

For example, if I want to target the word 'widgets' which is the better choice and why?

**Choice 1: ** www.domainwithauthority.com/widgets

Note:  this domain has 1000 links to it

**Choice 2: ** www.widgets.com

Note:  this is a brand new domain with 0 links

[SebastianDyer]

It is always best to think about what will be easier and more helpful for your visitors. However, you are more likely to rank faster with the strong domain with links to it.

[Dan-Petrovic]

I don't always vote in favour of exact match domains but in this case it's an obvious choice. If you target a single phrase with an exact match domain with few links pointing to the site - the reward can come quickly and with relatively little effort. I have seen some chases where the main term was so competitive that it took a month or two of link building before the top spot was reached.

If it was me though I would have the both. My real site on an older, trusted domain and a promotional satellite site for the exact match domain.

[EGOL]

It depends upon how much authority your primary domain has.  If only a little then go with the KW.com.  But if the primary domain has a lot of authority then the KW.com will need a lot of links to beat it.