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First impressions are important.
By taking advantage of Web Hosting services, you can have a web address with the name of your business, or a word that describes the type of service or product you offer. This tells your potential customers you've planned your web presence and take it seriously. Before visiting your web site, visitors already have a good impression. People and search engines take more notice of top level web addresses as opposed to those that are in subdirectories. Of the two addresses, the first one will be visited more often, and it has the advantage of displaying your business name first.