It is sometimes forgotten that up until 2004 Yahoo was the tool used to find information on the Internet, and that Yahoo was then a directory.
Today the number one tool for finding information on the Internet is the search engine,and in particular it is Google. Search engines are so dominant that many newcomers to the Internet have probably never used a web Directory. However just because most people don’t use them it doesn’t mean that they aren’t important.
Web Directories are lists of websites organised into categories containing just a basic site description (max usually 250 characters), which you normally supply. In some cases someone will visit your site to check its content, and then either allow or disallow your site for inclusion in the directory.
Because directories usually require some form of human editing to be useful they are very manual intensive and may require a fee for inclusion.
The most popular directory until 2004 was Yahoo, until Yahoo moved from a directory driven engine to a spider driven search engine model. The Yahoo directory still exists and is still regarded as important, but whether it is worth paying for inclusion depends on your circumstances.
Because the popular directories like Yahoo and DMOZ are hand edited they tend to be of high quality. Most search engines will give more weight to a website if it is listed in a quality directory.
So if a search engine thinks two sites are equally valid but one is in a major directory and the other isn’t, then the directory site would normally be listed first.
So in highly competitive fields a directory listing can be crucial.
Besides their use as a quality control, they are incredibly important as a non-reciprocal link source.
Free and Paid Inclusion Directories and Reciprocal Links
There are currently three directory models being operated.
Free Inclusion- Here you submit your site and it is added to the directory, either automatically or manually.
Paid Inclusion -Here you need to pay and then submit your site and it is added to the directory, either automatically or manually. Some directories (Yahoo in particular) don’t guarantee inclusion even though you have paid. Therefore always check the terms and conditions.
Paid directory listings have (dec 2007) come under scrutiny by Google, and some sites penalized. That doesn’t make them all bad but you have to be careful which ones you use. Generally if the directory has high admission standards then the fee is justified and the directory will probably be OK.
Reciprocal Links- These directories will let you have a free listing but you must also link back to them.
Local Directories -These will probably, in time, replace the yellow pages that have ruled the telephone world. There will however be many more of them, some stand alone and others provided as part of local Portal sites.
These will become very important for local businesses as more and more people use the Internet for locating local businesses and services.
Niche Directories- These don’t exist in the off-line world (at least not for the general public). They are organised around a theme (e.g. Windsurfing,painting) rather than a place. They are particularly important for niche websites/businesses that have a wide geographical appeal.
So don’t forget about directories as they are an important part of the SEO (search engine Optimization) process. Not only that;some directories can also bring a significant amount of quality traffic.
Remember that just because you don’t use them there are others that still do.
(source:http://EzineArticles.com/?expert=Stephen_Cope).
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Adda4u.com launched as a directory on 13th Oct 07 with a tag line “Quality Links”.
There is no human voice here, only the sound of electrical charges and discharges. But just the same there is a language. A growing and important form of communication, greater – more powerful – than anything ever devised or visioned by mankind. 
