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Paid for inlcusion, or PFI, is where you pay to be included in a directory or similar website which will then bring you website traffic and/or better search engine rankings.
However, the PFI model has basically died when yahoo removed that option and went for a PFI and Pay Per Click model. All that remains are smaller niche directories which will add a link for a monthly, yearly or onetime fee.
If you are joining these for a boost in rankings then you need to choose the directory carefully to make sure that the page you want to be included on is related to your site.
There are still thousands of free to enter directories, so unless there is a compelling reason or great offer from a well known niche directory, you might be better off submitting to free directories and put the money saved towards something like Text link ads which offers placement on a site of your choice from their inventory of link space sellers’ websites.
In Japan there is a similar service which you can use to buy links on Japanese sites. It’s called “buy text link ESP“.
Another new service is DCclickads which offers he ability for websites to buy and sell text link ads, graphic banner ads, and embedded inline ads.
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A good web directory to get your site listed is MasterMOZ.com. This web directory is growing rapidly and offers you a chance to get 1 listing free! There is also a paid listing web directory option which gives you greater flexibility and more options. I signed up for the service to list one of my sites and its really a smooth operation. Also, as the directory is fully SEOd you get a good incoming link which all adds up to better search engine positions.