I receive quite a few emails with people asking me this, the obvious answer is that Google looks at the keywords within a domain name and gives a direct value when someone types those keywords in the engine. While this may true I do not believe it to be the only variable.
If you’re familiar with SEO you know Google looks for the keywords you have typed into the engine and searches for articles and content with those keywords. The top link you will find most relevant to the number of times it has those keywords in the content closest together and also incoming links from authoritative sites utilizing the same keywords close together. For example, if you put the words “click here” into Google what comes up first? Adobe. This is not because Adobe has some strong hold on the keywords “click here” but because when you find them on other authoritative sites one most commonly finds a link that states “click here” that redirects you to the Adobe download.
This is the same for the search engine. I was thinking about it the other night but it only makes sense, if I develop one of my domains for example VegasRealty.com and people begin mentioning the site on forums and blogs than Google will read not only my website attached to that blog or forum but count the keywords “Vegas Realty” for my site. EVERY time my website is mentioned and I get a link it is counted for those keywords, if I used a brandable domain such as ILoveVegas.com than I would need to use html to create a link that reads “Vegas Realty”.