Once upon a time, submitting to DMOZ was very essential for higher search engine ranking. Google doesn't have a directory of its own and uses DMOZ or Open Directory database as Google's own directory list. So being listed on DMOZ would help you significantly in getting ranked well on Google for which site owners and online business owners used DMOZ directory submission as a must do.
DMOZ however is not what it used to be once. When you submit your site to DMOZ, you need to make sure that the category you are submitting under has an editor. If there is not editor for your category, your DMOZ directory submission might go to your top category editor or might just end up being lost in the space.
Getting the submissions approved with DMOZ is very challenging these days. It may take forever to get approved if you ever do. Sometimes it might take as much as months. Most of the directory submissions at DMOZ end up not being reviewed at all due to shortness of category editors or being rejected.
DMOZ used to be a good link building method once as being approved on DMOZ would guarantee approval from lot of other small search engines and directories. A site owner or online marketer would then get a lot of backlinks form a single submission. But this once so valuable and reputed directory failed to keep up to the promise at the end. Today, DMOZ means you directory submission has a very little chance of being approved. Even if you are approved, there is no guarantee that your listing will be there always.
DMOZ is well known for extortion. A DMOZ editor once asked for bribe from ShoeMoney for keeping his site listed on DMOZ. When ShoeMoney denied to the bribe demand, his listing from DMOZ was removed. Imagine that!
While Google still uses ODP database as their own directory, getting approved with DMOZ can be very beneficial. There are lot of small directories who do not have their own directory database and use DMOZ directory listings as their own data. So once you get listed on DMOZ, you get listed on lots of directories meaning lot of backlinks for you. But it is suggested not to lose any sleep over the directory submission with DMOZ. Best practice would be to submit and forget. If you get approved, then all the best. Otherwise just move on. Even if you get approved,. It may take as much as 6 months or so as there are lot more submissions than editors which is creating the massive backlog.
Web 2.0 opened a world of opportunity and site owners now have lot more choice of link building methods than ever before. Directory submission also became lot easier as there are thousands of directories out there today where you can submit for free. Which ever method of link building practice you follow, make sure you adapt to a white hat method as only ethical methods end up lasting.
For more information on directory submission, visit the author's Link Building resource site.