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There is nothing wrong with subdomains for SEO. Webmaster who don't like idea to have link on subdomain, probably don't know nothing or they know very little about SEO.
You can use subdomain, but then you need to work on BL for subdomain and TLD. Subdomain will get some value from TLD also.
If you put your directory under folder on TLD then you already have some BL to TLD, and you don't need to promote 2 domains.
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