Now that we have seen how best to design web directories, we look at ways we can monetize them. Note that in order to monetize directories, they need to have good quality sites listed and thereby get quality traffic.

The most common ways to monetize directories has been through the use of contextual pay per click advertisements like Adsense or YPN but these usually are not very good performers when it comes to directories. For directories, the best way to monetize them is to sell paid directory listings. The paid directory listings could be in the form of featured listings, sponsored listings or one of their variations including but not limited to banner advertisements etc.

Another very underutilised way to monetize directories is to provide value added related services. For example, a manual directory submission service is something that would sell like hot cakes if priced right and done honestly. Similarly you may choose to provide article distribution service that could also do well.

Again partnerships with other like minded webmasters would help you to provide a basket of services at a lower price. This would increase sales volume against what you could achieved single handedly.

Monetizing a site is all about how innovatively you can think. It is not necessarily about garish ads that are a sore. Think out of the box and you would be surprised at the number of oppurtunities that are right in front of you!

In the next part of this quite popular series of articles, we look at some cost effective but effective ways to promote your directory website.