"John Mueller from Google stated, "Usually not a problem for search." He added that the Google misspelling feature could lead to confusion, where search results might suggest the other site as a typo. He explained, "Did you mean fabdomainname?" This confusion may persist until search algorithms recognize both domain names, which can take time depending on the strength of the other name."
"Mueller emphasized that while the initial confusion might occur, over time, search will settle down as it learns that users are looking for both names. He noted, "Depending on how 'strong' the other name is, that can take quite some time though." This indicates that the impact of a similar domain name can vary based on its recognition and authority."
A Reddit user inquired about potential SEO impacts from having a domain name that differs by one letter from another. John Mueller from Google stated that this typically does not pose a problem for search. However, he noted that Google's misspelling feature might initially confuse users, suggesting the other domain when searching for the brand. Over time, search algorithms will adjust to recognize both names, but the duration of this adjustment can vary based on the strength of the competing domain.
Read at Search Engine Roundtable
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