I would say the #1 answer or reason is the hunt for targeted traffic.

If your business's sales leads tend to be high value leads - say a sales lead for a product that sells for $10,000+ or that generates a profit of $1,000+ - and a given directory is able to deliver pre-qualified leads - then you are ahead of the game if a directory delivers that type of lead with such frequency as to make payment for the listing that generates that lead profitable.

For example, a directory may generate only 1 qualified lead every 5+ years, but if the listing costs $10-$25/year that one lead more than covers the cost if it converts. That's where you get into targeting and all the discussions about niche directories or market verticals. The more targeted the traffic the more likely the leads will convert.

[edited by: Webwork at 2:32 pm (utc) on May 17, 2007]

Thanks. So targeting is a major factor then - k, I think I'll go for one of these niche sector vortals, but am considering the value of links in something like Yell or Thomson - what do you think about these professional directory monsters.

I have some more questions about directories

When considering advertising. Do you look for:

Price of each listing

Additional incentives offered to entice websites to add themselves

Value of the actual link itself

Do search engines apply any favouritism towards directories? If so, is this a factor you guys look for?

So far as search engine handling of directories I believe Mr. Search Engine himself (Matt Cutts) recently addressed the issue on his blog. The short version of his analysis/critique of directories and their links would be "quality". Quality likely reflects an editorial policy that doesn't accept every application and that looks at enduser value.

You might want to look at how Business.com handles itself. Their distribution network likely helps bring traffic to advertisers.

I would steer a wide course around directories that hang out a sign on their masthead (or in other domain forums) promoting their "SEO friendly" attributes, an approach that is all too common. You might look for directories that are SE friendly but don't advertise that as their value proposition.

[edited by: Webwork at 10:04 pm (utc) on May 17, 2007]

Sometimes a site cant know how effective the directory is until they have listed in it for a while, so it can be hit and miss. I have sites in business.com and yahoo.com and i dont see many hits at all, the same site in a small niche directory that charges less can produce a better return on investment.

Some you expect to get traffic from and you find its very little and others can shock you.

In all i find that a niche directory on the subject matter of the topic of the site the best. So niche wins imo. I dont like directory sites that dont provide direct urls and i look for nice easy to use layout - hand edited always helps because you dont want a top site listed next to junk

Good luck

Business.com? I've heard things about them like:

They will put your adds on sites in their network that you would never approve yourself. Those sites encourage random clicks and the result is complete garbage traffic

Low annual fee — $199 gets you listed for an entire year. mmmm seems a lot for directory listing.

Does anybody here use business.com, it's just a few people have recommended them and I'd like to know what the clickthrough might be like.