Here are  reasons why to use keyword rich domain name and why it will  improve your overall online success and your search engine rankings.

Niche Relationship with website

A keyword-rich domain name is the best way to show your visitors that your website and your niche are related. You have to appear as relevant and closely associated to your niche in order to show up in search results for queries related to it. You can give yourself an extra boost in that direction by including a primary keyword in your domain name, and you’ll have a much easier time supporting your website with the niche you are targeting.

Customer Recall

Some people seem to forget that your domain name is basically a signpost for your business. If you were a traditional brick and mortar business you would have a sign out on the road telling people who you are and what you offer. For the online business, this is what your domain name does so by  including keywords will make it serve as a signpost, alerting people about what you do and what you offer.

Helps in recruiting visitors

An important part of online business development is recruiting visitors to your website. After all, no matter how great your website is and no matter how great your company or your product is, if people don’t get a chance to see for themselves then they will never know and you’ll never earn any money. But with a keyword rich domain name you are going to be actively recruiting people to your website by showcasing what you have to offer and what they can expect to see once they click on your link.

At its meeting in Paris, ICANN, a not-for-profit organization that oversees the naming scheme for Web sites, voted to accept a proposal that will allow companies to purchase new top-level domain names ending in whatever they like.

So, for example, instead of being restricted to sites ending in .com or .org., eBay could have a site that ends in .ebay, or New York City could end its Web site with .nyc.

The new naming process will begin in 2009. The first suffixes will likely be given to businesses and other major organizations. Countries are expected to keep their specific suffixes, but as in the example above cities could also get individualized URLs, such as .london or .chicago.