It seems that there are an unlimited number of directories to submit to. 1. How do I know which ones to submit to? 2. Are the directories that charge money to submit somehow better than the free directories and if so why? 3.Why do some directories charge a lot and some are less exceptive. Dose the amount charged when the price is higher mean they are somehow better and if so why?
1. Check their PR, indexed pages and BL's. 2. Paid directories have much less outbound links, they have usually bigger PR and they are much better IMO. Free directories often have links to spam sites but this is not a rule. 3. If they are more expensive, probably they give bigger value to you. You must check their BL's, indexed pages and PR.
First and foremost, you want to make sure you are listed in your niche directories, not generic ones. Especially, if you are expecting some traffic from them besides the links. If you want the links, make sure they are static, normal, compliant links spiders can follow, not some JavaScript ones. As zokiii pointed out, make sure the pages that link to you are indexed. Make sure the directories don't use shadow SEO or link to spammy sites. This could hurt you if they require a link back to accept your listing. I also check for rel=nofollows all the time. Paid dirs usually have human editors that review each submission carefully to ensure the quality of the listings. Also, sometimes you have an option to pay a small sum to get listed faster. Personally, I mostly submit to paid dirs if I think it'll bring me both traffic and SEO benefits. Not necessarily so. Think about software products -- same thing. A high price tag doesn't mean high quality. Some people just want to make more money and faster than the others Warkot
Your best of submitting websites to directories which are based upon a unique class C IP address. Use the free tool at SEOChat to check the IP address of a website. Alot of people will setup a dedicated server and create multiple websites with similar content situated on the same class C IP address. Submitting your website to these directories will most likely have a negative effect if you link back to them! Do your research to ensure they are a quality directory.
Just something I should point out about your comment which is true but to be honest you shouldnt really be linking out to a directory in the first place, unless its part of your site topic or your site is a directory too.