Favicons are small images that appear next to a web site when you save that web site on your favorites list. In order to have a Favicon for your site you will need to follow a few steps.
First you will need to add the following code to your html inside your head tag.
<link rel="shortcut icon" href="http://www.findthebestlocal.biz/favicon.ico" type="image/x-icon">
Of course you would use your own domain name.
Hypothetically, you should be able to forgo this code and simply add a favicon to your root directory. In my testing this simply did not work.
Now you will need to create the graphic. The final size will only be 16 x 16 pixels. Start with an image at 160 x 160. Create something with a limited number of colors. Typically favicons are a small smiley face, symbol, or single letter relating to the name of the company.
Once you are happy with your image, resize it to 16 x 16 pixels. Save it as a GIf for now.
Next you will need to convert the file to the ICO format. There are plug ins available on the internet. Generally they are attached to your graphics program. For myself I found a plug in that could be used with Jasc Paint Shop Pro. Unfortunately I do not remember what site I got the plug in from.
Once you have downloaded the plug in, save your file as favicon.ico. Then upload this file to the root directory of your web site.
You are done! Now if someone saves your site on their favorites, they will also get your artistic masterpiece.
Keep in mind that favico's are saved in the visitor's temporary internet files, i.e. browser cache. If they clean out their cache, the favico will be deleted.
You can save this page on your favorites to see the effect.