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I' ve been told that the search engines will drop your web site every month and that's why some services offer monthly re-submissions. Is this true?

The search engines do not actually drop your website. To keep the rotation of listing the search engines tend to change their criteria. This automatically leads to a fall in the listing of your website. Though many submission agencies may deny this. But one can actually derive a priority listing in the search results of a search engines in the most popular keywords. Once a list of the most popular keywords/ keywords phrases are outlined, the website is then submitted on these keywords/ keyword phrases which ensures that whenever a buyer types these keywords your website is reflected on the priority listing.