On-line directory is, in general, an approach to organizing information and presenting the data in on an easy to read way.
Directories are collections of Internet sites organized by subject. Users click on a topic of interest, and then browse through the list of resources in that category.
Directories are constructed and maintained by human beings, rather than by the automated computer programs used to create search engines.
There are two basic types of directories: academic and professional directories usually created and maintained by subject experts to support the needs of researchers, and commercial directories that cater to the general public and are competing for traffic.
An example of an on-line business directory is DMOZ.com.
DMOZ.com is a must place to list your website, products/services and business.
If your site is listed in Internet directories, then it can also have a higher ranking on search engines, for example Google prefers web sites that are listed in the Open Directory Project (dmoz.org).
If your web site is listed in industry specific and regional directories, then it can gain a higher link popularity score which can improve your rankings on other search engines.
In addition, directories bring targeted traffic to your web site. A listing in all important Internet directories will have a very positive effect on your web site. If you want best results for your site, you should make sure that your site is listed in all relevant Internet directories.
The most important tip is: submit your web site to the right category and follow the directory's guidelines carefully.
A smart course of action is to plan on adding Website directory submission to your marketing plans as soon as possible. You can not rise to the top of the search engines if they don't know your exist.
Budget: $100 - $250 per month