When a domain name is indexed it always ranks well for the keywords in the domain, unless it is a single or two word generic term with millions of competitors. Even then, when developing a website on that domain, the benefit is huge. Having the keywords targeted in the domain name WILL make the difference between a top 10 ranking and a ranking on page 5. It will make the difference between having an online business see profits or go broke.

However, the exception to this is in brandable domain names, such as my own here at otooo.com. If you can create your own brand then the top rankings seem less important. They are still a great asset though.

Like most people in SEO would agree, the other major top contributor to rankings is the title. In small, untapped niches with low competition, to gain top 3 rankings it is only required to have the exact targeted keyword in the title. All other SEO techniques will benefit and seal that top position in.