I agree with the subfolder.
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Posts made by EGOL
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RE: Create new subdomain or new site for new Niche Product?posted in Intermediate & Advanced SEO
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RE: Creating Backlinks On Behalf of Clientposted in Link Building
I would place this blog on the primary domain. Then all of the value from links that hit the blog will help power the primary site.
I believe that the job of the SEO is to ask the client "where do you want to be visible" and inform them "where you can be visible".... then let them know that visibility there will never happen unless they have content that positions them for the target keywords.
So, I would let them know what it will take to be visible for some of their important keywords.