linkbaiting? can you elaborate please; I have over 30,000 members and have a page like this http://www.k9stud.com/linkexchange.aspx which allows my members to post my banner on their site which includes a link to my site; is that what you mean?
lol...think with your "logic", why would you want to pay those directories? To get reviewed? Don't be naive, you want to get backlinks, that's all. Google is not stupid. Maybe now we could see significant chances from paid directories but who knows in the future?
I think your layout needs to be better. There's too much distracting stuff running here and there. If selling puppy is your main business, set it right in the top-middle of your page. Take away all the banners. In your top page, have your menus with the main keywords. In the sub-pages, have the secondary keywords. Don't lump everything in the first page.