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Is there a reference you can link me to that shows the search engines are discounting or ignoring these links? It's not that I don't believe you, I would just like to show my colleagues. Just so I'm clear we're talking about the same type of directory listings, say for example Yelp, Merchant...

Is it a "strength in numbers" kind of thing?

I personally don't either... If I'm looking for anything, I start with google. Why is creating directory listings considered a strategy that people suggest? Not necessarily the only strategy, but A strategy to create back-links. Is it possible to even track the traffic from a directory site?

How do you determine which directories are credible or not? Which are the most popular directories that people actually use and are converted from?

What about "optimization" books?

that much? So... do they help or not? And how can it hurt a site's URL? And if anchor text is still a viable option my question still stands, Why COMPLETELY abandon it?

I was under the impression that creating backlinks on credible sites was still a good thing. Although they might not always convert, they do help with page rank... Why completely abandon it?