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What is a Bid Directory?

By S. Gonzales
Updated May 17, 2024
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A bid directory is a website that functions like an auction for advertiser links. Advertisers bid for visibility and front page status on a website. Advertisers with the highest bids have links listed higher on the directory and, thus, have a greater chance of being clicked on by visitors. Advertisers may find this type of directory to be more practical and profitable than traditional fixed-price paid listings because the bid model allows advertisers more control over his or her position on the list and can save them money.

Some bid directories may allow advertisers the ability to add descriptions below their links. This is especially helpful to website owners who have ambiguous domain names. For example, a website owner who has a domain name that is comprised only of numbers may find that listing a description can help market their website.

Many directories require that advertisers make minimum bids as part of their submissions to the directories. Fortunately, these minimum bids are usually modest amounts. A website's true position on the bid directory will be determined by the bids of his competition. For example, a popular directory category may require a higher bid to be on the front page, while only a fraction of that amount may be needed to remain on the front page of a less popular category. Directory owners may be able to create as many categories as they desire.

Setting up a directory requires a web host and bid directory software. Software can vary from the simple to the complex. Many bid directories can be set up in a few minutes by simply downloading the appropriate files and uploading them to a host.

Marketing a directory should be at the top of any directory owner's list of priorities. Advertising the bid directory will get the attention of website owners who, in turn, want to advertise their websites on the directory. Bid directory owners will also have to spend time on their page rankings, their visibility through links and their advertising campaigns to attract a general Internet audience who will click on the links. The success of the directory will likely depend on how well a bid directory owner can attract both website owners and the average Internet user.

Some bid directory owners can even promote their directories by submitting their website to other bid directories or having them listed on websites dedicated to directories. Their goal is to increase the visibility of the new directory. However, once a bid directory owner has established the directory, has successfully marketed the website and starts receiving regular bids, the process becomes automated and the owner need only enjoy receiving bids and payments.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
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