The answer is yes and no. If I try to summaries the answer than it will be, “Links from free directories with quality contents are good and links from paid directories who tries to flow PageRank/anchortext are bad.”
Here is what Matt Cutts says, “when I say “paid links” it’s pretty safe to add in your head “paid links that flow PageRank and attempt to game Google’s rankings.” ”
Aaron Wall and Andy Hagans clarified Bad Ways to Build Links in this way, “Submit your site to 200 cheesy paid directories (averaging $15 a pop) that send zero traffic and sell offtopic run-of-site links.”
Now what about free directory submission? Please read this, “Directory submission can still be very useful regardless of what people tell you. If it wasn't, there wouldn't be directories. The directories help with back links and provide authority and link popularity to a site. It is imperative that you submit your site to the proper category; otherwise you run the risk of wasting your time by not being accepted. So if you aren't going to do it right, don't do it at all. Good place for free and paid directory submission is.....”
Now we have understood what Google thinks about directory submission. But, what about Yahoo and Bing? The matter is Yahoo is not strict to any kind of directory(paid or free) links. In fact you can rank well in Yahoo easily if you buy a link from Yahoo Directory. And may be Bing also things in the same way. Lastly expecting your views about Yahoo and Bing here.
Now, just a little commercial. I have a little facility for link building and quality directory submission. Hire me if you need high quality link building services.
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