Cristian Mezei has a great post on Web Directories with an Affiliate Program over at SEOPedia. As anyone with a directory knows, trying to make money from affiliate marketing and contextual advertising is extremely difficult. This is because most of your traffic is probably coming from search engine marketers and webmasters, both of which tend to be Ad-Blind.

Christian suggests marketing toward these people, as opposed to the end-user - someone who is using your directory to find a website. The best way to monetize a directory, according to this article, is to send the webmasters and search marketers to other directories that have affiliate programs.

For a list of directories with affiliate programs, click here.