I love an acronym more than most, and this is a good one
Google has an inordinate focus on domain name(and a difficulty in concatenating).What concatenate means is that brendan-mcnulty is a better domain about me that brendanmcnulty as Google has a way of differentiating where one word ends and the other starts.
As Google has a preference for the keyword in the domain, this gives you an opportunity to ran highly if you have the keyword in your domain. However if it is a highly trafficked term then you will struggle to get the domains. Which is where this tactic comes in. the theory is to build a number of simple websites with second or third tier keyword domains with a lot of interlinking between them. No need to create fancy sites, blogs will do, as long as you obey all the usual rules (h1’s, alt tags, keyword density etc)
I’ll explain how you would put it into practice; you want your Michael Jackson memorabilia site to rank highly, but all the good domains are gone (mjtribute etc). So you buy ilovethriller.com, billiejeanismylover.com (I’m being facetious, but things like thriller or associated terms around this would be useful, the yahoo keyword suggestion tool will help you with this). Put up relevant content about mj, and link cleverly between them (and with a link going back to your main memorabilia site from each of the pages), as well as putting your shop onto each of these pages.
Google views the domains that you have as being in the same interest group, so therefore relevant, and the number of sites builds an interlinked web of interest about a specific topic. The search volume on them is significantly less than on the more generic terms (which is a mixed blessing- the domains are still available, but you need more of them)
I wouldn’t put this topic as the first step in your SEO approach, but once you have exhausted your initial optimization on your site, it’s a good one to begin
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Brendan McNulty 
2 replies on “KRD- keyword rich domains”
are you not trying to 'trick' Google by doing this or do they not mind as long as there is relevant content on the other sites?
its not gaming the system. what you're doing is creating relevant content around a specific interest area. Google trys to analyse the relevant information around a specific topic and you're adding to the conversation. “However” I think there is a bit of a flaw in how Google values a domain that will evolve over time to be more focussed on other areas.