Although this can sometimes be the only option for those who are running on a non-existent budget, it is not a way that will effectively build your website or revenue. There are a few potential reasons why this may be detrimental to your business building efforts.
Let's take a real life example. Imagine that you are an accountant working from home. You write an article on an accounting topic and place it on various article directories. Those who are looking for the subject you wrote about will read your article, see that you have the knowledge and skill that is needed to do a job for them, and visit your website or contact you via e-mail. Your article just gained you a new client who may use your services regularly, but will definitely give you a nice profit at least once.
Furthermore, since you have posted it on a free article directory, others who have affiliate websites about accounting will inevitably use your article for their website. Since they must attach your byline to it, this will bring you even more exposure for every website that re-posts your article. This because you will be benefiting of off the traffic that they get to their website.
There are numerous article directories out there for you to utilize. Your bet best is to put a copy of each of your articles on every one for maximum exposure. It will eventually help to bring more traffic and customers to your website, which will lead to new orders and more profit.