I need to get to the top 5 for the pharse threadless coupon and I don't have a big budget for this. on one hand, with some quality backlinks from related websites I can do it but I'll have to pay each month for those backlinks. on the other hand, I can get backlinks from free sources.. social networks, forum posting and so on.. what do you think? what should I do?
I think you should do both and more some ideas are here http://forums.digitalpoint.com/showthread.php?p=9526423
Try to exhaust your free options first if you don't want to spend money on buying links. I would say strike a balance between both submitting to web directories and forum posting are two options that you already know
That's ok but how relevant are web directories today? I think we need to travel back on a time machine when backlink wasn't a developed concept as it is today. Backlinks then were only to get some possible traffic of those who got interested to follow it. Those were the days when internet search wasn't exactly the search by the real meaning of the term, and most of these backlinks used to be voluntarily inserted ones by the webmasters. Then came the Web Directories; example: Yahoo directory and DMOZ which in a way helped surfers locate their intended information or websites. I have to say that since submitting to directories has become an abusive practice with sporadic directories, Google has removed all credits it used to give for links on these so called directories. This includes DOMZ and Yahoo directory too. Please read this thread if you are interested.