Well some would argue that one site is better than 2 (or 3 or 4... etc). I lean the other way more often than not arguing that each keyword should have it's own website. You can't really get any more focused than that, but at what point does it become overkill?
We recently broke one of our larger clients websites into 3 distinct divisions. This generally would have made fantastic sense, but it seems that while 2 of the new sites are working well (the previous domain and the smallest domain). This kind of hampers the last site. Unfortunately the old domain still ranks for those phrases that are now on another site. The redirect seems to be working at this time so perhaps it is just a case of having Google follow and re-index the new domain. Time will tell I suppose.
I'll keep monitoring the progress and report back. I guess this is why this should have been the plan from the get-go.
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