Marketing_Guy - 2:17 pm on Aug 8, 2012 (gmt 0)
Running a decent directory is a lot of hard work and very difficult to get off the ground, particularly if you are relying entirely on SEO as a traffic source.
That said, I wouldn't tell anyone to not do it - just don't expect it to be an easy ride. Creating and maintaining a solid directory can be a full time business and can be as difficult as building up and maintaining an active discussion forum or social network in many ways. If you think that you can grab a directory script and people will start submitting their websites, you'd be wrong.
I've run a small directory for over 10 years now - even though I've taken time to ensure all submissions are not spammy, the organic traffic is still tragic. I've also consultanted with a large directory (1 million+ visitors per month) - they put millions into getting that project off the ground and keep it running and have 30+ staff and 300 franchises across the UK.
In terms of software (assuming you don't want to get something built from scratch), php link directory is pretty basic and to be honest, it's somewhat synonymous with spam these days. eSyndicat is OK and worth a look at, but still lacks any serious advanced features. DirectoryPress for worpdress looks OK too - haven't tried it but thinking about checking it out. Haven't heard of Mosets Tree before, but it looks OK as well.
Oh and one tip - if PageRank or dofollow links factor into your sales pitch or strategy in any way = you're doomed! ;) There is zero point setting up a PR selling link directory these days - no one is touching them and Google will blitz it real fast. Think about adding value.