Here’s a very simple explanation:
Facebook Profile: PERSONAL
This is your default account when you create an account on Facebook. This should be for personal use. Your posts here can include your day to day happenings, pics of your kids, your dog, etc. On your profile, you accumulate Friends, which you must accept and they must accept you. You get a maximum of 5k friends. You can only have one Facebook Profile and there is only one administrator- you.
Best Practice: Create different Friend Lists in your personal profile. You can create a list for professional associates, a list for personal contacts, a list for your inner circle and a list for family. Then, whenever you post an update on your wall, specify to which list that update will be shared.
Facebook Fan Page: BUSINESS
This is what you should use for your Business and your Brand. On your Fan Page, you accumulate Fans. Someone becomes a fan when they click the LIKE button on your page. You do not need to approve Fans, anyone can Like your page. There is no limit to the number of Fans you can have. You create a Fan Page from your personal profile. You can create multiple Fan Pages and you can assign multiple administrators. When you post an update, it will be posted by the Business name.
Best Practice: Don’t try and sell on your page. Your fans login to Facebook to be social. Utilize this free marketing tool to post updates about your brand, ask questions, answer questions, create contests… all with the goal of engaging with your fans and building a community within your fan base. This is also an excellent tool to monitor your brand reputation. If someone posts something negative, you can see it immediately and deal with it in a positive way, before it escalates.
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