The common refrain in webmaster circles is that directories are dead and are not worth submitting to any more. But directories do offer a number of benefits and so should be considered an essential part of the marketing mix for any serious website. Some of the benefits they offer are: co-citation, anchor text, targeted traffic, and deep links.
So why do webmasters commonly believe directories are dead? This is because they make a number of mistakes in submitting to directories that end up costing them many of the benefits they could get. These costly mistakes are:
(1) Costly Mistake #1 - Submitting to 300+ free directories. This will probably do nothing to help your website’s rankings and may even hurt it. In Google, a few quality links will outweigh the benefits of many spammy links. I’ve put together a list of directories ranked by SEOmoz’s page strength tool which gives a good starting point for determining what the best directories
(2) Costly Mistake #2 - Worrying about price rather than value. A common question I hear asked is: “which directories can I submit to for under $20?