Of course the answer is yes (for top end web directories) but how popular would a directory need to be before people use paid inclusion (which would for example get them to the top of the list?).

Im asking because im about to relaunch my web directory which kinda went down hill because i cldnt maintain it properly. I have now upgraded to a CMS which will make life much, much easier, and should hopefully attract quite a lot more links! Potentially could i earn some money from my directory???

What kind of content does your directory include?

I would say 'yes'.

If it is a web hosting directory, I would say no. Otherwise, I would probably say yes.

Its a general internet/webmaster related directory, theres a variety of different sections, take a look at the link in my signature. Currently working on the design before it goes live on the root domain! (see below).

It all depends upon the content of your directories and how well you market it.

If it is a web hosting directory, I would say no. Otherwise, I would probably say yes.
Why do you say that he cannot make good money from Web Hosting Directory? If you market it very well, you can make huge money on it, you know why? because

in most of the directories, only webmasters come to submit their links for the search engine ranking and they say good bye to the directory forever.

But in specific directories like webhosting directory, webmasters will add their sites to the directory and then ordinary people will use it to find their hosting easily.

Another reason of making good money from hosting directory is that all web hosting related keywords are high paying keywords in such money making programs like Google Adsense and Yahoo Publishers.

I say no, b/c there isn't room in the industry for yet another hosting directory.

I say no, b/c there isn't room in the industry for yet another hosting directory.
I do not agree with what you say. That depends on the way you market for your website. ‎
I am making about $2000 from my website and I am just a newbie. ‎

It totally depends on your daily traffic. ‎

Generally, the websites directories that are specific like Web Hosting Directory can make ‎you more money comparing the other websites like General Directory listing website. ‎Because most people will come and submit and disappear but when you have a specific ‎directory like a web hosting directory, some people will submit their sites into it and ‎some other people USE IT, and you will get more money from the second kinds of ‎people.‎

are you making $2000 from the website you have in your sign ?

Submitted my link to your directory!

In answer to some of the question my directory contains everything webmaster related, so thats hosting, design services, programming sites, webmaster resources... nothing quite as specific as just hosting! In terms of exposure if you do a search on google for either 'free webmaster directory' or 'webmaster directory' my site is up there in the first 2 or 3 pages... so not bad really (i dont think). Im obviously getting exposure somewhere cause im getting around 5 to 10 site submissions every day... question is how do i make all those page visits into £'s!