A niche directory is a directory focusing on a topic like software, entertainment, etc. instead of a general directory which may focus on many topics. Niche directories can also just focus on one smaller topic, for example directory software instead of just software.

Niche directories can help new directory owners succeed with less competition than big general directories. Niche directories also provide more relevant and useful backlinks for search engine optimization purposes. One challenge for owners of niche directories is finding enough relevant listings - in other words, actually having a substantial enough user base. A niche directory like “sock repair” may not attract enough people to warrant an entire directory, but “socks” might.