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There are two ways to network on Facebook 

  1. Create a Group Page or 
  2. Create a Fan Page 

Creating a fan page for your local business has several advantages compared to a group page: 

  • You can have unlimited fans. Groups are limited to 5000 people only. If you think you might never reach 5000 people, think again. Even a small obscure business can have over 20,000 fans in under a year due to viral marketing. Word spreads so fast on the social networks especially when your business gets featured on a TV show or a celebrity endorses your product. 
  • You can add applications to your fan page making it more customized and improve your fan experience. These include RSS Feeds from your blog, website or Twitter accounts; Flashplayer for video and game content; Posted Items Pro that allows you to embed YouTube videos, music and other files which can be posted in your press section etc. Groups are not allowed to have extra applications. 
  • Fan pages are visible to everyone and are indexed on search engines like Google meaning anyone can find out about them and join. Groups however are only visible to registered members and one can only join by being invited by a member. 
  • Fan pages offer you the power to analyze your fan statistics via the Page insights section 
  • When someone becomes a fan of your business on Facebook, this information is posted on their wall and also in their profile, which their friends can view. When their friends see this, they get curious and follow their friends lead to your business fan page creating more fans for you. This is the power of Facebook-the social proof that ignites a following. 
  • While both fan pages and groups can be marketed through Facebook ads, fan pages have the additional benefit of being marketed through social ads. Social ads publicize the connection between a specific fan and a fan page such that a business can use a fan’s picture and profile as part of their sales pitch. 

Facebook Fan pages, therefore, work better for businesses seeking to connect with their customers on a wider scale and in a more interactive manner than Facebook groups. 

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More information: https://www.postplanner.com/top-10-benefits-facebook-business-page/