Subdomain and root domain effects on SEO
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I have a domain lets say it's mydomain.com, which has my web app already hosted on this domain. I wanted to create a sub-product from my company, the concept is a bit different than my original web app that is on mydomain.com and I am planning to host this on mynewapp.mydomain.com. I am having doubts that using a sub-domain will have an impact on my existing or new web app. Can anyone give me any pointers on this? As much as I wanted to use a directory mydomain.com/mynewapp, this is not possible because it will just confuse existing users of the new product/web app. I've heard that subdomains are essentially treated as a new site, is this true? If it is then I am fine with this, but is it also true that subdomains are harder to reach the top rank rather than a root domain?
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Why not just buy a new domain if it is a totally separate product?
You are correct: a sub domain is essentially (for SEO purposes anyway) treated as its own entity.
As long as you build great content, find great link opportunities and treat it as you would any other domain you should have no problem getting it ranked.
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Aditya
No matter what you want to use it for, a sub domain is essentially its own domain and, it does not really affect your original domain. As to how a sub directory will will confuse your visitor but a subdomain won't, I do not see that as true. But, I think your real question is "is it harder for a subdomain to "rank" than a subdirectory? No, but let's be clear about what does rank in the SERPs: Pages.
So, you can have a sub domain with 5 pages that are able to rank just as easily as a domain that has five pages that rank. (Or one page, or 100). Given what you are wanting to sell, I would focus on UI/UX and ranking for the key terms for your apps. Quit worrying about the subdomain vs subdirectory. Choose one and rock on.
Best,
Robert
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