Want to know who makes money operating directories? Marketers. Anyone can buy or set-up a web directory. To make real profit from the site, you have to know how to promote it. It takes time, money, and effort to build a directory business. If you are not willing to do what it takes, don't be surprised if you earn little to no money from it. How do you promote a directory? First you need at least one directory that offers real value to your customers. It should be priced properly and have some unique feature or something that makes it somewhat memorable. Advertise. Get your site listed on sites and lists that folks go to when looking for paid directories. Get both text link ads and well as banner ads. Brand. Branding is often overlooked when it comes to Internet Marketing. All of the successful directories that I know have been branded. Build a customer base. So many IM'er are looking for a one-time-sale. To make real profits with directories, you must have repeat business. Think about how to promote your directory. The directory business is not what it used to be but there is still a ton of money to be made.
I think the directory market has exploded in value as the internet getting bigger but directories still are one small slice of the "connect with a business" pie chart. I see two likely answers to directory business: 1-It's too hard to start over. 2-It's not as bad as many out here think. You're right, every business needs good marketing in current competitor's world.
I don't think that the market has exploded, I think the number of crap directories has exploded. Funny- If I posted some stupid question like: "are directories still worth submitting to?" or "I need a list of free directories with high PR and quick approval", I would have had a ton of replies.
And that is my weakest spot. Trying to come up with viable and non-traditional ideas has me feeling lost in a dark room, stumbling over furniture looking for a light switch. On my current project which I wanted the challenge of seeing if I could pull of a paid directory from scratch. I badly underestimated the money required to do this right but am plugging along. I opened on April 1st this year and it has been a lot of hard work and false starts but while expenses aren't being covered things are looking up. I look at it as an evolutionary process and am committed long term. This has been my focus with the goal of providing 'value added' to my clients and hopefully providing a good visitor experience. I have learned the hard way this gets expensive very fast. Workin' hard here and at times wonder if Willie Q. is my alter ego or I am his. Hope this weakness doesn't bring me down. There is a small cadre of like minded owners/developers hanging in the shadows of the link farm gutter slime obscenity working hard trying to do it right. I think the topic of this thread is very interesting. While I wouldn't expect good marketers to give up their best secrets it sure would be nice to hear it kicked around. BTW, the signature is my current project.