When designing a favicon (favicon.ico) for your site, you should try to incorporate at least one of the followings:

- Site logo
- Letter(s) that represent your domain name/site name
- Mini icon/picture that represents your site (eg: if your site is about beauty products, you might want to use an icon of a lipstick)
- Site color scheme

xHTML Code

<link rel="shortcut icon" href="http://www.example.com/favicon.ico" 
type="image/x-icon" />

OR

<link rel="shortcut icon" href="http://www.example.com/favicon.ico" />

Favicon Tools
FavIcon from Pics
Dynamic Drive FavIcon Generator
Favicon Generator
favicon2dots (convert your favicon to dot's like 3Ddot image)

[tags]favicon, favourite icon, ico, icons, design, branding[/tags]