Starting a new product, should we use new domain or subdomain

[gallantc]

I'm working with a company that has a high page rank on it's main domain and is looking to launch a new business / product offering.  They are evaluating either creating a subdomain or launching a brand new domain.  In either case, their current site will link contextually to the new site.  Is there one method that would be better for SEO than the other?

The new business / product is related to the main offering, but may appeal to different / new customers.  The new business / product does need it's own homepage and will have a different conversion funnel than the existing business.

[KeriMorgret]

Hi! We're going through some of the older unanswered questions and seeing if people still have questions or if they've gone ahead and implemented something and have any lessons to share with us. Can you give an update, or mark your question as answered?

Thanks!

[gallantc]

Thanks for the quick reply, it will be like Coke Zero to Coke, a new product with a sub-brand that includes the main brand.

[Gyi]

2009, but still very good: http://www.seomoz.org/blog/understanding-root-domains-subdomains-vs-subfolders-microsites

Without knowing that much about what you're planning, I would suggest new domain or sub-directory.

Will this new product be newly branded or a product of the old brand. In other words, is it more like coke zero to coke or more like chrysler to dodge?