Submitting to web-sites is one of the most straightforward ways to build links to your websites, however such a practice is not without problems, there is a prevalence of small directories and directory site operators who mainly exist to swindle you. For instance a list operator may constantly launch new internet directories, focusing all the PageRank they have on the new ones, to make it look like an attractive submission, then eventually they may get prohibited for manipulating PR etc, or submissions dwindle, and they open a new one, forsaking the old one. Meaning, that nice listing you paid for, quickly evaporates.
Directories alone also cannot be your only building links endeavor, you need other types of links as well, that being said, here three of the most important and powerful world-wide-web websites on the web:
DMOZ.org, the poorly managed free list. It can take several weeks or years to get in, and then a competitor who is a directory site editor can just remove your listing or not approve it to begin with. There have been occasions where even higher up Dmoz editors (so-called meta editors) were corrupt in this way. Still, every new site should be submitted. You just cannot count on it.
Yahoo, the highest regarded pay list, has vastly dropped in importance due to Yahoos own decisions to devalue and de-emphasize their directory site in their search results and throughout their site. Meaning less and less traffic browses their website than what used to. They also require a annual fee, not a one-time fee, of $300 a year. So, in order to submit to them you need make sure you will earn at least $300 a year directly off the traffic & link benefits you gain from the directory website listing. In general I consider listings for sites whom I think can be rewarded with an increase of at least $10 a day through higher traffic. I know, an actual positive ROI would be around $1 a day, but there are other methods for raising traffic than a Yahoo submission, that would give a much better ROI, so the gains in my mind have to be substantial to justify it.
Best of the Web, what I consider the final of the very best tier directories, has the benefit of being very similar to Yahoo, but better in that they have one time fee submission options. With a one time fee submission you have 5 years, 10 years, to make up the cost, it is much easier to justify than Yahoos yearly fee (BOTW also has a yearly fee option). Best of the Web has been around nearly as long as Yahoo as well, and throughout the site Pageranks are very close. They have less traffic than Yahoo of course, but they are much cheaper too.
Building back links is as much about your websites recognition as your sites rankings, and I think being discriminating in your submissions is a good thing and will help make sure you do not over do things and trip any present or future filter or penalty.
Another really good place to submit your website is my own little directory website (requires a recriprocal link): Submit Your Websites.
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