I heard bout someone saying that on pubcon, cutts said that google doesn't give much importance on directory links. I read a post somewhere saying buying or selling links for pagerank is considered spam and they may be filtered out. any comments.
In the last PR update directory PR wasnt quite as high as it was expected - an indication that google is getting wise to directories and what they are being used for, hence less strength was given to pages in the last update - something that will also be reflected in the Januaray GBPR update. However so saying the more unique directories (especially those niche in nature) didnt seem to be overly effected by this. I think to answer your question 'are directories bad?' - the answer is, those that use a basic skin and use an identical category dump structure are probably bad, and hence google might view these newly established directories as being duplicate content sites. On the other other no, not all directories are bad! Just my general thought on the subject, im sure someone will disagree!
Matt Cutts may have said that directory links are usually discounted, and that paid links are discounted - BUT he also hinted that DMOZ and Yahoo-directory links are very valuable. So some paid links do work (Yahoo) and some directories do work as well (Yahoo and DMOZ). It's all about the quality of the directory. If it's the kind of directory you'd advise to your mother to use - the link is probably worth something. If not - then it is probably worthless (or almost worthless). Getting your site listed in a specialized directory catered to your niche / region is never a bad idea. Paying to get your site listed in one of the general directories that get advertised here on DP is probably a waste of your money (which is probably why it's usually so cheap). I've never gotten my site listed in any paid directories and its doing fine - but then the domain is old and I do submit to free directories here and there. It's also listed in DMOZ several times.
One more thing: general directories aren't bad - they just aren't going to do your site much good either. A link to your site is never going to hurt you. It's what you do on your site that CAN hurt you. So don't link to directories that rely on reciprocal links - they are not likely to be a 'good neighbourhood' for your site to be in.
Yes but they arent your average general directories - also google directory and search information is based on DMOZ so in their opinion DMOZ is obviously good - although in reality and in recent times DMOZ is a bit of a crappy directory (in my view).
DMOZ and Yahoo are general directories, but quality ones. For instance, their religion and spirituality section (my niche) is better then or as good as most specialized directories on the subject. So I guess it's really about quality. Most general directories (you will find hundreds by reading the DP forum) on the other hand don't even bother splitting up a category that's become too full into sub-categories based on subject. And if they do, they will usually just copy DMOZ. That's the kind of directory I meant that isn't very useful. The main point I am trying to make here is quality: a quality directory is a good link. Specialized directories are usually quality directories (not always): they will have more passion for the subject. Looking for a quality directory you should take into account that a link is worth more if the text around it contains words related to your site. So a good directory splits things up by subject - so each page is specialized to a specific subject.