What's the difference between subdirectory and subfolder
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I don't really get what they're saying there, it doesn't make much sense to me. But there's not really any difference in the eyes of the search engines between sub-domains and sub-directories anymore... they're counted as pretty much the same thing.
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The difference between a subdomain and a subfolder:
Subdomain: http://blog.mydomain.com
Subfolder: http://www.mydomain.com/blog/
Miss read the question.
The 101 part, someone correct me if I'm wrong, comes from the calculation that 101 PR0 links = 1 PR1 link, and 101 PR1 links = 1 PR2 link, etc.I can't find the actual page that I read it on.
I have no idea what they are referring to with the 101. Sounds like the parable of the 101st monkey to me.
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They might have been counting the site itself or the assumed link from blog.url.com, but what they were really trying to emphasize that subdomain sites are considered separate sites from the site on the root domain and you'll need to plan your linking strategies accordingly.
Matt Cutts discusses the differences between subdirectories and subfolders here: http://www.mattcutts.com/blog/subdomains-and-subdirectories/
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A subdirectory and a subfolder are the same thing. The example you gave is a subdomain and subfolder/subdirectory.