First of all, do NOT submit your site to reciprocal link directories. This will boost your ranking in the short term, but in the long run, it will kill you. Link spam is on the verge of being blacklisted by Google (and we all know that is the only search engine that matters anymore). I'm not saying to not exchange links, but if you do, make sure it is a site with actual contect, and not just a bunch of useless junk on there.
Secondly, you don't have to pay to be in a directory. Anyone who says you do is full of it. Google indexes your site the same, regardless of if you spend $1000 on a submission or nothing. The best way to optomize your site is the same old fashioned way. Keep your spiders.txt file up to date, and make sure your site is fairly W3C compliant. The spiders will find their way through a lot easier and your rankings will increase because of it.