Every time you use a link shortener like bit.ly, ow.ly or goo.gl, you are creating a 301 redirect. These short links forward the user to page you want them to view while allowing you to track statistics on clicks. If you are a Foster Web Marketing client and delete a page on your website, DSS will allow you to create a 301 redirect so you don't lose any search juice in the process.
These are great uses of 301 redirects, but it's not actually what they were designed for. The real purpose is for websites that want to change their domain name. For example, if FosterWebMarketing.com wanted to change our domain to FosterWebMarketing.net, we would want to create a 301 redirect for every single page on the old site to the corresponding page on the new site. This helps search engines figure out where content is located and greatly reduces the traffic loss you might experience in a domain name change.
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