If you watched the super bowl last night you may have seen the GoDaddy commercial promoting the new .co domain. They are actively marketing this new extension. Its definitely a sign of the times that many new domains are sprouting up for webmasters to use. Many new sites are using .ly such as hour.ly. I’ve heard experts say that thre are many new domain extensions coming. You may be even to make up your own extensions at some point. So having a dot com address is not as necessary as it used to be.
A .com is best if you have a consumer facing site but you can get away with using something else. I have several .net sites such as washingtondcjobs.net which have good search ranking. And I have a client who runs collectionjobs.co – a job board for collection jobs. The owner came to me a few months back to increase his search ranking. He wanted to be #1 for the term collection jobs. And now he is.
So the moral of this story? It doesn’t really matter that much as to what your domain extension is. In this case the keyword friendly url with a .co at the end is good enough.