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The first thing you need to make for your small business on Facebook is a fan page. A fan page is like an advertisement which doesn’t cost you anything.

A fan page is also similar to a profile: you include pictures, links to your website, as well as information on your company your clients may need. From there, your customers and prospects will “like” your page and show their interest in your products or service.

However, there is more to it than that: You need to keep your fanpage active by building the fan base, posting updates, uploading photos and engaging your fans. You can also publicise promotions and events you are having. What is nice about Facebook is that you can use the viral features by getting your fans to tell their friends.

Another way to acquire more fans is through polls. This will draw interest from people who aren’t yet a fan and may prompt them to press that “like” button too.

You can also pay for advertisements to direct people to your fanpage. You can use this to offer free samples or to advertise your promotion or event. Or you can even advertise for more fans. The beauty about Facebook is that it is not as expensive as other advertising, even other online advertising like Google Adwords. Also, you can target the individuals and demographics you want to market to precisely according to their geographic area, interests, age groups and any other specifications of your target market. So you target the person and his or her interests, and not keywords they search for like Google Adwords.

Create an ad by logging in then clicking the “Create and ad” link on the right hand side of the screen. The screen that follows will be a design tool where you can add your information.  You can then choose the demographics, time period and budget, and see your ad’s estimated reach.

Remember to use a “Magnet Offer” in your ad and use this to attract your prospects to your products or services. This way you know that they are there because they want to be there.