Subdomain vs Sub Folder

[rufo]

Hi.

This is my first question here guys and gals so please be gentle.  We are creating a town based website that will hold news, events, articles and relevant local content.  We are also creating a business directory that will be part of this.

My question relates to an issue we have regarding how the directory will be treated as part of the "network".  Although we aren't 100% sure on the domain name yet, we want the directory to be found as easily as the domain itself.  Even better, if the two could be treated seperately but strengthen the overall theme for the domain we'd be in keyword heaven.

Therefore in your opinion (hopefully with pro's and con's) which do you think will rank better in Google, Yahoo and Bing (or all three);
The directory seperate as a subdomain or as a folder within the main domain?

So for example - providing we are including links between the two sections and the site is www.sitetown.com

Which is better for the directory itself?

1. http://www.sitetown.com/directory

2. http://directory.sitetown.com

   or you're mad Steve, use a seperate domain altogether

3. www.sitetowndirectory.com

I hope you can help, obi-wan, you're my only hope.....

PS - seomoz still rocks.

Thanks
Steve

[Gaveltek-173238]

There are a lot of levels here, but I will address only the URL format. It is accepted practice and generally considered more effective to:
http://www.blahblahblah.com/blah as opposed to a subdomain(blah.blah.com).

the part that will be up for debate is the sitetowndirectory.com questions. I feel its a great idea for you to build a brand around whatever name you choose. This takes a lot of good old fashioned SEO but with the help of the community here you will be just fine. At the end of the day its up to you to make your domain work for you. There is some benefit to keyword rich domains, but these days we see a real trend towards brand, brand recognition and brand trust.

Feel free to shoot me a message if you need more specific information.