I’ve been asked this by a few clients recently, and the answer is yes. And no.
The wording in our domain is just one small element that contributes towards your website listings. If your domain is spot-on but the rest of your SEO is useless or non-existent, you’ll get nowhere. If your domain is useless but the rest of your SEO is spot-on, you’ll be flying.
The most important time to consider your domain is when you are first setting up your website – then you can choose a domain featuring one of your main key phrases, and it will contribute to your over all optimisation efforts. Ensure, of course, that your domain is easy for people to read, understand and type in too – you don’t want to sacrifice usability for SEO.