[question]
Does the use of location-based sub-domains have any effect (positive or negative) on SEO or how we are viewed by search engines? Is there any downside to doing this? As a way to structure a network of related sites, does this make sense?
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[answer]
We would advise going with country specific URLs for 2 reasons:
1. Google is continuing to favor local websites for local information.
2. Older URLs are also favored by Google.
An alternate way to achieve your goals is to use a Global Navigation Bar ala the WSJ Digital Network to allow users to discover all your sites.
[/answer]
