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Does extension of the domain actually matter in SEO ? if yes, what are the pros and cons of various domain extensions ?
extension of the domain actually does not matter in SEO or for Google. Google have clearly mentioned this.
But if you go for business in world wide, then go for .com
Extension does not matter. You can use any extension and get ranked high and receive good traffic. If you have a dot come and you published a scrappy article and another person who has dot xyz and published a high quality article, the later will outrank the former. The main thing to consider is the quality of the content.
So, I guess you have gotten some good answers here. It is up to you and your content and what you want to do with it I think, that will make or break your blog like vinaya has to say. If you have high quality original work your domain should not matter so much.
If what you mean by extension is the suffix of the website address which is actually the domain name provider I guess it has nothing to do with the SEO of the site. Search engines have their own methods of evaluating a site’s capability for SEO beginning with the title of the web page and some other information in the meta tags. I don’t think the search engine crawlers mind the extension of the domain.