It’s pretty simple: marketing on the Internet is, on one level, about dominating as much real estate on page 1 of Google as possible.
The typical places to dominate are the left side of the page (natural or organic search results) and the right side of the page (paid search results). However, with the abundance of online directories aggressively marketing themselves, the ability to own more of page 1 of Google for a certain key phrase is more and more attainable.
Many online directories work as lead generation services providing their clients with a profile page that can act as a separate web site in organic rankings. Some even guarantee a certain amount of leads per month for a given cost. Often they will also sell visible real estate on their site for an extra cost (e.g. a banner on the home page).
The main problem is that businesses sign up for these directories
1) without knowing enough about the service to ensure they are going to get an acceptable return on investment (ROI),
2) not knowing how to use these profiles to their fullest ability and 3) not understanding that in signing up they’re paying the directory to compete with them
3) not understanding that in signing up they’re paying the directory to compete with them
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