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Do google penalise if you have another domain name sitting ontop of the primary one? I bought two domains - slightly different spelling and sat on ontop of the other to both point to the same site, would I be penalised for that?
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Yes you can get penalized for duplicate content if the domains are just "sitting" on top each other. Make sure you only have one primary domain and 301 redirect the other variant domainnames to the primary domainname.
A 301 redirect will tell Google that other domain names do exist but to only focus on the primary one. This will also apply any backlinks that go to a variant domain name to your primary one if someone links to a variant domainname by accident.
You can apply a 301 redirect using .htaccess.
Hope that helps.
PK