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Directories = Sites that provide a listing of other websites usually organized into categories.
Directories can be free or paid. DMOZ is the most valuable FREE directory PR8 - but they do have strict criteria for getting listed. If your site is the slightest bit spammy/pushy forget it. If your site is an affiliate landing page forget it - some editors won't allow ANY affiliate links. If your site is not useful or interesting and commercial, forget it. Too much adsense will also bias the editors checking out your site. TIP: Clean your site before you do directory submissions, make it as useful/interesting/and non-spammy as possible.
It's easy to confuse Google and the search engines with directories because often the first step Search Engine Optimizers take is directory submissions. Directory submissions should be done by a professional in a "manual" fashion. Find your pro by asking for recommendations on webmaster boards. If you hire an SEO consultant, they will likely outsource the directory submission task (it's tedious).
Once you are in 100+ directories, you will quickly be found by the search engines. Make sure you give clear, concise details on your site to the directories.
Personally, I refuse to use paid directories, but I have heard BOTW is worth it. Some also like Yahoo, and some offer bribes to DMOZ editors (never do that). Until you fully understand the value of a link, don't pay for directories.
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