Can anyone recommend the fastest way to do this? Is there software? How can I quickly populate the directory with just a certain type of industry. It is hard to contact people to puy their link in when it is pretty empty. Thanks!
Probably there's some software to care of your links. But I suggest to do everything by hand (human edited). Suggest your directory to the websites you want in your directory, gain popularity for the directory and other people will submit their niche business to your directory. I reccomend NOT using automated bulk emails, there will be no response. When approacing people tell them what you like about their website. I'm sure people want to submit websites to the directory. Check this page for more info about niche directories. http://www.info-sales.co.uk/index.php?page=niche
I would recommand using an email harvester that can search engines by keyword. This way you only harvest emails from websites related to yours. You you have build a nice list, write a letter saying you found their site on X engine using X keyword and you think your websites have similar themes for exchanging links. Its effortless and it will save you a lot of time searching for partners. Just be careful so you won't be accused of spam.
Forget about directories and forget about programs... do everything by hand the old fashioned, email someone way. you'll get much better results, plus you get to meet some really cool people that could help you out later possibly.