Sometimes a web directory is confused with a search engine. A web directory also known as link directory or business directory is however used for SEO. Usually SEO friendly directories are Human Edited Directories. A web directory links and categorizes web sites based on the whole web site rather than one page or a set of keywords. The sites are often limited to inclusion in only a few categories. Owners can directly submit their site for inclusion, and have editors review submissions for fitness. Web-directories generally list websites across a wide range of categories, regions and languages. But there are also some niche directories which focus on restricted regions, single languages, or specialist sectors.

Examples of well known, general, web directories are Yahoo! Directory and the Open Directory Project (ODP) or DMOZ, www.business.com, BOTW.

Directories listing may have various types (based on price paid) of listing:

• Free submission
• Reciprocal link – a link back to the directory is a must.
• Paid submission – a one-time or recurring fee may be charged
• No follow – The listing has rel="nofollow" attribute which implies that search engines will give no weight to the link.
• Featured/Sponsored listing – is usually a paid listing.
• Bid for position – listing is ordered based on bids
• Affiliate links – directory may earn a commission for referred customers