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The - can help eliminate some confusion www.pen-island.com would be more clear for a ballpoint pen website than www.penisland.com, which has another interpretation. The same goes for a site like www.sales-exchange.com vs www.salesexchange.com which might be confused as "sale sex change".

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I always liked the example of expertsexchange.com. These are the only situations in which I would prefer I hyphenated domain, though I'd rather rethink the domain entirely as Expert Exchange ALWAYS looks like Expert Sex Change to me now.

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