I always advise clients on a few basic business and SEO/PPC concepts before they buy multiple domains for their products and services. I generally start with a simple concept, it is an oversimplification yet it is effective. "Think of the Internet as the Pacific ocean and you "Mr. Businessman" are trying to catch every single fish in the ocean. This will be very difficult with just one fishing line, which is the same as having just one website." However if you desire to have multiple websites you should register them via proxy and that way Google can not see who owns the site. Furthermore you should have each separate site hosted on a completely different server with different ip's and c-classes, etc.
Now how far can you take this business model?
E.g. If you are FTD.com can you dominate and control most of the PPC ads on Yahoo, Bing and Google?
If you are FTD.com can you have 6 out of the top 10 natural listings?
E.g. By owning multiple "flower delivery" websites all with different business names, yet all owned by FTD.com.
The answer is maybe.
If you do a Google search for "flower delivery" you will see what I mean.
FTD.com is a massively huge company that buys many of its largest competitors and keeps the websites separate, so if you do this search for "flower delivery" FTD.com may own 7 out of 10 of the top ranked websites. Therefore your choice is really FTD, FTD, or FTD, even though the website might be Proflowers.com
I started looking at this last year and noticed that FTD stated on all these websites that they did own them. I remember thinking to myself, gee if they hired me, I would advise them to change that immediately. I do not think Google would allow FTD to have such total domination of all flower delivery related keyword phrases. So now I noticed even with the new ProFlowers site, no where on the site does it say that they are owned by FTD any more.
I am not sure what the whois shows for all these different sites that FTD uses to dominate the search results.
This is also a factor with customers. So by not mentioning FTD on the ProFlowers.com website the customer does not feel their only choices are FTD, FTD or FTD.