Link Building: Directories are Easy for Newbies to Understand
Why does general directory submission persist as a link building technique? Because it is easy for people that want or need simple answers to understand. "Submit your URL to these directories and it will be alright." People want simple answers, when they have to do the work themselves.

Also directory submission is for shy people, it's like put-the-package-on-the-front-step-ring-the-doorbell-and-run submission and, most newbie webmasters are shy because they are on unsure ground. There is none of the negotiation required for reciprocal link exchanges and having to converse via email with a real live human.
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