Okay, this is an interesting one. last year we had read many posts about keywords in the domain name, the industry seemed to be split more or less 50-50 if this was beneficial or not, so we decided to do an experiment on our own domain name. We will publish an article regarding this and post it more detail on SEOMoz later this month, but for now, our results are definitely in favour of keyword loaded domains.
Originally we used eCommerce-web-design-seo.com as our domain name, it said exaclty what we did. Just over six months ago, we changed this to our business name fusionsoft.co.uk, as well as doing this, we put a reasonable effort into seo to make sure that the test was fare. Over the last six months we have seen a huge drop in traffic, we are now going to change back to the keyword loaded domain.
Now, just to back this up a little further, we have a customer who runs a part time business, we built them a low budget website, the domain was their business name, Drysdale Couture, they had no money for marketing, we did all the basic onsite optimisation and set them up with a few local (quality directory inserts), they had no enquiries for 6 months. We suggested changing their domain name to a keyword loaded domain name, bespoke-bridesmaid-dresses.co.uk now they have a top 10 listing for variations of these keywords.
However, the counter argument is also a strong one, it is better to build a brand that customers will search for and find you directly, dependant on the nature of the business, building a strong brand can be expensive and take a long time.
Using a keyword loaded domain alongside good SEO Marketing will deliver results, however, the domain name should not be too heavily loaded and must be based on good search research, e.g. bespoke bridesmaid dresses.
I hope this helps.