One of the most common -- indeed perhaps the most common question we’re asked during client consultations is: “What’s the difference between Facebook Profiles, Groups and Fan Pages? Why would I want one and not the other?” The questions go right to the heart of one of the most confusing aspects of Facebook.
The issue is made all the more confusing by the visual similarity of these items and by the fact that Profiles, Groups and Fan Pages have common aspects and features. The good news is that there are unique attributes and advantages to each and it is easy to understand once you grasp the purpose behind their creation.
Let’s start by looking at their commonalities: All three types of Facebook pages provide the same basic functions, that is, the ability to post messages and various media that are viewable to others who chose to join or follow that particular page. Beyond those basics, however, these items diverge.
Take note of this fact: At present, Groups cannot be converted into Fan Pages, so your initial decision may have consequences down the road. Choose wisely!
What is it for? Profiles provide personal data and informal information sharing.
Who should have one? Individuals
Suitable for commercial purposes? No (See, http://www.facebook.com/terms.php)

Limitations:
Advantages:
>> Learn more about Profiles on Facebook.
What is it for? Groups provide a focal point for people with a common interest.
Who should have one? Any cause, event or matter that appeals to a particular group of individuals.
Suitable for commercial purposes? No (See, http://www.facebook.com/terms.php)

Limitations:
Advantages:
>> Learn more about Groups on Facebook.
What is it for? The promotion of an organization, a public figure, a product or a brand.
Who should have one? (1) Any entity that desires a branded presence on Facebook. (2) Anyone who needs the ability to accommodate more than 5,000 followers.
Suitable for commercial purposes? YES.

Limitations:
Advantages:
Note: Facebook calls these simply “Pages” but that generic name is one source of the confusion many people experience, hence in this article we’ve used the more distinctive label “Fan Pages.”
>> Learn more about Fan Pages on Facebook.

In sum, if you are an individual, all you need is a Facebook Profile. If you have a special interest group or network, then consider Groups. If you are a business looking to build brand and promote a product or service, then Fan Pages are your best bet for engaging your customers and stakeholders. From a commercial marketing perspective, Fan Pages provide five key benefits that Groups cannot match:
Very helpful...
Thanks for simplifying things for us/me/everyone. .. I think the seo factor of the fan page trumps all. I'm sure google will start to suggest more and more fan pages in the results. I was left wondering exactly how to go about getting a fan page with a good url such as facebook.com/bali Wes