Bid or bidding directories are those directories which require website owners to place bids in order to get sites listed in these directories. The bids usually start from as low as $1 with which one can expect to get listed in these directories. However, for the highest placement or listing in a category, one would have to constantly increase bids in order to ward off competition from other websites.
The websites in these directories are thus ordered based on their bid amount. The higher the bid, the higher will be the listing. Higher listings are the ones that are most visible; hence these attract more incoming traffic.
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