Web directories are an important component to search engine positioning. Directories come in all shapes and sizes, some are generic, while others are highly specialized. Directories, are defined as categorized topics or collections of information organized into a tree like structure where categories are used to define each groups association.
Large directories like Yahoo tend to have general themes and may charge for listings. While smaller niche directories like http://www.finance-investing.com offer free listings and profit from advertising revenue or pay per click models like Google AdSense.
Being listed in a directory not only brings in targeted traffic, it provides a one-way link from a website with similar content. Directories are generally highly ranked in search engines, and are considered well respected resources, two traits that are desirable in link partners.
While smaller directories that focus on a specific niche might generate less traffic, the quality of the traffic from a niche site is usually highly targeted and will be superior to that generated from general search engines.
If you are selling fire alarms, traffic from yahoo will be...