Hi,
I would like to create web directories on specific topics of my
interest. The aim is to help people searching for quality info on
specific topics. Naturally, the directory is a list of outbound
links.Do I need permission from anyone to do this? How would I be able
to monetize my website?

Hi! Thanks for the question.

First of all, please take note of the important disclaimer below that
Google Answers is not a substitute for informed professeonal legal
advice. All information provided here is general information only.


It seems that if you are just going to show a simple hyperlink text
like www.google.com  then there is no need for permission and is
generally considered ?fair use? under copyright principles. This
explanation from the Stanford website provides some very good
information.

?Although permission is not needed for a simple word link (also known
as a "hypertext" link), it is required when the link comprises a
trademark from the linked site (for example, using the Amazon logo
without permission). Some other types of links known as deep links or
framed links also require permission.?

?CHAPTER 6. Website Permissions?
http://fairuse.stanford.edu/Copyright_and_Fair_Use_Overview/chapter6/index.html 

A more detailed explanation about linking and permission is available
in the next link.

?Connecting to Other Websites?
http://fairuse.stanford.edu/Copyright_and_Fair_Use_Overview/chapter6/6-c.html#1


Now as regards to monetizing the website, I find this blog from Darren
Rowse of Australia as a very helpful one. He discusses about Google
Adsense. Which is quite popular these days, but the discussion is much
more in-depth. Plus he also talks about other sources of income both
direct and in-direct for your website. He may see things from a
blogger?s point of view but most of the principles can be adapted to
other types of websites as well like directories.

?Adsense Tips for Bloggers?
http://www.problogger.net/archives/2004/09/23/adsense-tips-for-bloggers-1/
 
?Diversify Your Blogging Income with Secondary Money Earners: ProBlogger Blog Tips?
http://www.problogger.net/archives/2006/04/01/diversify-your-blogging-income-with-secondary-money-earners/#more-2423

?Affiliate Programs For Blogs: ProBlogger Blog Tips?
http://www.problogger.net/archives/2005/08/22/affiliate-programs-for-blogs/ 


Search terms used:
hypertext link permission fair use

Also searched at:
http://www.problogger.net/

I hope this would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
                                                          
                              
Regards,                              
Easterangel-ga                              
Google Answers Researcher

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Request for Answer Clarification by johnman-ga on 19 Jun 2006 04:22 PDT

Thanks for this useful info but I would like to know specifically how
to monetize web directories with examples of how other companies have
done it.
Thanks.

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Clarification of Answer by easterangel-ga on 19 Jun 2006 04:50 PDT

Hi again! 

It seems that for bigger web directories like Yahoo, companies
advertise directly because they are such a popular site. They also use
their own contextual Ad System as well.

http://dir.yahoo.com/


Another way that web directories like Yahoo make money is by having a
fee if you want your website to be reviewed and listed within a
specific time like 7 days.

Yahoo! Directory Submit
https://ecom.yahoo.com/dir/reference/cost


But you have to have a directory as popular as you to demand direct
advertising and also fee submissions.

Again, even if the things I referenced above in my original answer was
about blogs, the principles can still be applied to different types of
websites.

I hope this would be of help.