Sorry if this is mentioned too much, but I have a small niche site, and, for me it seems like the only way to get related links is from directories, both paid and free. If I had a lot of money to buy directory links, could I make a site compete with top keywords like games, insurance and cars (assuming the on site seo and the age of the site etc. is very good)? Thanks
As what I know google is targeting paid link directories which is not following seo guidelines. So avoid submitting to penalized directories. The only good thing I see in directory submission is the quality backlinks they can provide. Just submit to the quality ones. And I don't think your site could rank with just directory links
i would say everything helps ... directories submitting is a easier way to get backlinks but directories are not enough you need more links from other related sites.
google has problems with the paid directories. it's better to use the other link building ways like article marketing
Directories seem to help in Yahoo and MSN the most. Don't forget these guys represent a HUGE amount of traffic.