More correctly called 'top-level domains' they fall into two main categories, international top-level domains (COM, NET, ORG, etc.) and country specific top-level domains (US, UK. AU, CA, DK, etc.). The criteria for selecting a top level domain is simple and straightforward. If you want to target your site content to users Worldwide then you should choose an international top-level domain (e.g. '.COM') and if you want to target your site content to users in a specific locality or country then you should use a country specific top-level domain (e.g. '.CO.UK'). Do not make the mistake of thinking that you are obliged to choose a country specific top-level domain simply because you happen to live in that country.
For example, if your site is about web design then it is likely to be of interest to users all around the World and this means that you should choose an international top-level domain. At the opposite end of the spectrum, if for example you are a local window cleaning company then it is just not useful for your site to appear in search-engine listings thousands of miles away in other countries and this means that you should choose a country specific top-level domain. Choosing a country specific top-level domain name will give your site higher search engine positioning to searchers in that country and is likely to mean that you get preferential listing in local and area directories, etc. These factors can be very useful for a locality based business.
Failure to select the correct type of top-lever domain can result in great problems when it comes to promoting a web site or the product it sells.
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