The first real faction I was in was the Hellfire Legion and my time in there has really been a lasting influence on the way I play this game and how I deal with factions. I joined with an existing lawful character who went rogue and once I got in I had the best time I've had on Disco probably. The people were fun and personal initiative was encouraged properly (for me anyway, thinking about my propaganda radio station Hell FM makes me even feel a bit nostalgic) and I slowly climbed the ranks and even got into High Command. It just felt right, slowly progressing through a faction and feeling like you're a part of something enjoyable.
When I became leader of the Volksfront and afterwards (and this currently still is the case in fact) 2iC/adviser of the VWA I always kept in mind that it should be fun, no stress and that it is important people feel involved with the faction. It is a game so no matter how it is inrp, oorp it is all about having fun together and relaxation. No strictness, respect and friendliness are the key. Factions just allow people to have fun together and feel part of something ya know.