I was planning to launch a web directory but wondering how much profitable can a web directory be as an online business, what marketing strategies are required to get some traffic and links there e.t.c. .. i already have a php web directory script and i'am about to customize it soon so its better to get all the information already.
Read this section and you'll know more about directory. http://forums.digitalpoint.com/forumdisplay.php?f=25
First you should start it as a free directory Then after getting 100 or 300 links in your directory you should make it as a paid directory That is you should charge the webmasters who submit their sites into your directory you need a small amountof $100 to buy links monthly as you can soon reach PR5 with 3 months if you buy a good amount of links from PR5,6,7, sites then if your site becomes PR5 by next PR update then you can increase your rates of $10 for each submission
Not really! Either paid or free is okay,but if you want to start a paid one,you need to pay more time and money on it.
I would go for paid in the medium to long term A few more general tips can be seen here for starting a Directory http://forums.digitalpoint.com/showthread.php?t=204721
Starting as a free directory definitely helps in boosting the entries but it would need some unique elements to be successful.
if you want to have a directory site as a serious business dont offer free inclusion. just offer cheap price from the start. you also need to build your PageRank and traffic but not necessarily.
Also a niche directory may be your best bet to distinguish your directory, the general directory market is a bit crowded but then again the more the merrier, good luck.
I am not sure about the paid directory part, i don't have PayPal available so most users won't consider buying links there. I'am depending on AdSense for any profit.
Paypal is great if its available in your country but if its not there are alternatives like money booker, egold and other payment services that may be available in your country. I am not sure a directory that relies solely on adsense will be viable but then again, I could be wrong.
All the other payment procedures you mentioned are available but i'am not sure if users will be interested in buying through those method