Logo Design: How Much Should You Pay?

According to Entrepreneur Magazine’s Business Encyclopedia, the price for a logo is somewhere between $4,000 and $10,000. However, if you spend just a few minutes searching the web for logo designers, you will soon find companies and individuals offering to design your logo for a lot less. But how much should you really pay?

First, it’s important to keep in mind that graphic design is a business. Like your company, if the design firm is not reasonably profitable, it will cease to exist. Even freelancers cannot defy gravity— if they do not charge enough to cover their expenses (and they do have expenses!), they won’t be around to help your business grow in the future. So, be suspicious of very low prices!

Let’s consider that a good, junior-level freelance designer in the U.S. may charge as little as $50 per hour, while a 5 to 15+ person design firm may charge as much as $200 per hour. If, for example, you’re being tempted by a “special offer” to buy a logo for just $200, you can probably expect the designer/firm to spend no more than 1 to 4 hours on your project. In just a moment, I’ll show you why this is unrealistic.

Otherwise, for a “cheap logo”, you can probably expect to encounter at least one of the following:

• A designer/firm who simply modifies and resells existing logo designs— with or without your knowledge; and/or
• An inexperienced and/or unqualified designer/firm who is struggling to stay afloat (and may not be able to complete the project or provide updates later); and/or
• A designer/firm who does not speak the same visual or verbal language as you and your target audience do (resulting in a poor design).

Of course, those things are fairly self-explanatory— basically, you get what you pay for, relative to a designer’s experience, talent, training, location, and even ethical behavior. But another major factor to consider is the design process itself (i.e., what you’re not paying for):

• What sort of information will the designer expect from you? (generally, the more, the better)?
• How many design options will the designer provide?
• How complex will the design options be (Standard/custom typography? Stock/original illustration? etc.)?
• How many rounds of revisions will be included in the price?
• How much time will be allowed for client meetings and consultation?
• Will you speak directly to the designer, or through an intermediary?
• Will the logos be designed for both web and print use?
• Will the designer provide single-color, 2-color, and full-color versions of the same logo (for multiple applications)?
• Will the designer provide a style guide that, at the very least, specifies fonts and colors used?
• Does the price include the design of your stationery and business cards?
• etc.

To provide more insight on what’s involved (and why designing a logo takes more than 4 hours), let’s take a look at my own process and the steps I took for a logo I recently designed for an online retailer…

Step 1:

• I met with the client, in person, to discuss project requirements and to learn more about the owners, the company, the marketplace, and their expectations.

Step 2:

• I prepared and provided a written estimate, relative to the unique needs of this particular project.

Step 3:

• Once the contract was signed, I presented my Strategy Brief (a 2-page questionnaire) to help me better understand their products, target audience, competitors, design preferences, etc., and then, I created a simple online Project Site for easy client access to all project-related documents.

Step 4:

I created an “Ideation” document (see below) that includes the following:

• The purpose of the Ideation Phase and the expected outcome;
• A list of adjectives that the client used to describe the new brand;
• The official dictionary definitions of the words used in the logo;
• “Mood boards” to translate the literal meaning of these words into a visual language;
• A simple review of competitors’ logos (to better understand how we can differentiate);
• Recommendations for punctuation;
• A visual exploration (rough concept sketches) to begin the creative process; and
• 10 black & white logo concepts with design notes for each.

And then, I also consulted with my client, re: their feedback, and next steps.

Step 5:

I created a Design document (see below) that includes:

• 6 refined grayscale versions of the client-selected logo with design notes for each.

And then, I consulted with my client, re: their feedback, and next steps.

Step 6:

I created a second Design document (see below) that includes:

• 14 further refined full-color versions of the client-selected logo.

And then, I consulted with my client, re: their feedback, and next steps.

Step 7:

I created a third Design document (see below) that includes:

• 6 further refined full-color versions of the client-selected logo.

And then, I consulted with my client, re: their feedback, and next steps.

Step 8:

And finally, once they were happy with the design, I created a simple Style Guide (see below) that includes:

• Single and full-color versions of the logo;
• Color and font definitions; and
• My contact information for design-related questions.

Below is the final version of the logo (ultimately, my client preferred a minimalist approach and were delighted with the end result).

While I won’t publish my hourly rate here, I can tell you that I spent approximately 30 hours on this particular project. The point is, don’t fall for “cheap” logos. Chances are, in addition to all of the headaches, you will pay at least twice— once to do it on the cheap, and once to do it right (which may also include redoing your business cards, website, etc.).

Now when you’re in need of a new logo, you will better understand what you are actually paying for (and, what you are not paying for). Above all, don’t be afraid to ask questions, and don’t forget to spend some time reviewing the designer’s portfolio and getting to know the designer (to make sure the “chemistry” is right), before you sign a contract.

Tommy Oddo is a web designer and digital artist who lives in Austin, Texas. Entrepreneurs, marketers, and in-house teams hire him to make their websites and digital products more engaging and easier to use. Follow him on: Linkedin, Quora, Twitter, and Facebook. Subscribe to future articles via RSS and/or Email.