I read somewhere that you can make money by allowing domain names to be listed in your own directory. So my question is how can I get started? Does anyone know how I can start my own directory? thank you
You mean setting up a directory in your domain name? That can earn you some money provided your directory is popular and this takes a lot of hard work.
There are many free directory scripts but it's hard to get people to pay unless you have traffic or PR. Try the Directories forum for more info: http://forums.digitalpoint.com/forumdisplay.php?f=25
Do what tobycoke says. Also just Google, "free directory scripts" or "free scripts" or other variations.
He can start off free and easy by taking the 2.0 version of phplinkdirectory. Free and with many great themes available.
look up bungee bones as an alternate option to adding a directory to an existing site, adding a directory to a site just to make money just because a mate told you is a bit iffy, to many junk directories now so it will be hard work, unless you just want more junk on your site.
There are hundreds and thousands of directories, and only few of them can make a good money. It's not so easy to make money from a directory, you shall spend a lot of time and work to make it profitable.
As the basics you need a directory script, hosting and to buy a domain, read the sticky threads here, before i began directories i read lots of threads here for weeks, i went pages deep. All questions are asked and answered about 50 times, read what its like to be a directory owner too.
Upload the script/ find and upload a free template. Spam the forums. Accept every submission. Boom! Rich in no time.