The question how to monetize your directory is very actual, even in case if it is your hobby site.
There are few methods how you can do that.
1) First method is advertisement like Google Adsense, Yahoo, Adbrite and Chitika Ads. You can use ads on your site from the first days of its existence. The efficiency of this method depends a lot on the niche your directory is in. Web directories targeted to webmasters would not produce a lot of benefit from ads as webmasters are not inclined to click on them. But directory in different sphere can produce rather significant profit. Usually advertising companies offer different methods how to increase click through rate but the best option is not to abuse ads.
2) The next method is charging for sponsored listings. This is considered as the most profitable and stable way to earn money with your directory. But before charge you should have something to offer in return, i.e. good traffic and Google PR. The price you are going to charge must be fair. And starting with small fee you can increase as your directory grows. Developing prices try to offer range of listings by different prices to choose from. That will attract more advertisers.
3) One more method is using affiliate programs. This method is easy and may be really profitable. The whole point of this method is to keep in the subject of directory or page you are placing affiliate adds. In fact you can place different affiliate links or banners on different pages of your directory according to the subject of the category.
4) Good method to earn money with directory is selling banner space and text links on pages with good PR. The stipulation is that only popular web directories can afford this method. If you cannot offer good traffic to your advertiser he/she would hardly pay money for ads. The prices to charge also vary depending on directory popularity.
5) Donations also may be a way to monetize your directory. This method best suits for free directories collecting free resources. The directory must be a really valuable source of resources very appreciated by users for they would be willing to support.
It is not difficult to monetize good popular directory but before focus on making it precious for internet community and you will be rewarded.
