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Yes, and I think the way that Web 2.0 sites (as defined by the way you are using the term, Jubaer), including those hosted on Wordpress.com and Tumblr, is a great example of why search engines treat subdomains as distinct domains. Practically anyone can set up a site on Wordpress.com like abc.wordpress.com with minimal effort. That is, after all, the primary service Wordpress.com offers, after all. The sites that exist as subdomains of Wordpress.com have very little in common with each other, other than being hosted on Wordpress.com. Wordpress.com has a DA of 96. There are some truly fantastic sites hosted as subdomains of Wordpress.com, and there are also a lot of really crappy ones, too. If search engines treated the value of a link from crappysite.wordpress.com as authoritatively as the value of a link from fantasticsite.wordpress.com simply because both are hosted on wordpress.com (which does, as you say, have a DA of 96), would that be best for users? Nope, it would not. Someone could have made crappysite.wordpress.com for the sole purpose of "earning" a link to their own (self-hosted) site, or created it with good intentions, but never put in the work needed to become a valuable site for its intended audience like fantasticsite.wordpress.com did. And, let's not forget about the importance of relevance. The topics of sites on Wordpress.com  are all over the place. Therefore, it makes sense to treat each one separately, right?

Hi Jubaer! The first thing to do here is to establish what connection your business has to these other target states where you lack a physical location. A web design company isn't like an SAB (a plumber, electrician, etc.) that will typically travel to various cities to serve clients. So, your connection is likely to be different to this, and for your industry, is typically going to be the fact that you have clients in these states. So, one suggestion would be that you create a page for each target state (it sounds like you're going after states instead of cities, right?) and then showcase your clients in that state on its designated page on the website. Add really good testimonials from the clients in those cities, accompanying their business showcase and brainstorm other content you might add to these pages to make them interesting and helpful. Understand that you will, of course, be going after organic rankings rather than local ones, and that if you fail to get the organic results you're hoping for (competition is likely to be very stiff) you may need to rely in part or in full on PPC instead of organic.

Thanks for your info. May I get any reference?