Are you starting a business, keen to get your logo done, but can’t figure out how much to spend on its design? Well, look no further, I’m here to help.
If you have already done some research on the topic, you must have figured out that pricing for logo design services vary wildly, so much so that it can be hard to tell how much is just about good enough. For the sake of example, you might have found that the Nike logo was sold for $35 while Pepsi spent 1 million on a logo redesign back in 2008.
Oh, and if that’s not wild enough, there are plenty of resources online to help you design a logo for free. If your budget is $0, then you might want to read this.
Why there’s so much variation? Well, to put it simply, logo design is not a commodity.
The price of a logo is set somewhere between how much a designer is willing to work for and the budget a client is willing to spend on its design, hence this is why professional logo designers tend to ask for their client’s budget before agreeing on a price.
In short, an experienced designer comes with a higher price tag while less experienced designer ones will be willing to work for less. Quite obviously, the same goes for design agencies, so a well-known award-winning agency will only work with a large budget while a smaller startup agency might be happy to work with a more limited amount.
With the above said, the most important thing to keep in mind is that the best budget is the one that is best for your current situation.
You should never spend more than you can afford, but once you set your mind to defining a budget, never spend less than what will get you a professional designer. One way to help you think about setting this budget is to understand that logo design is not just a business expense, but instead, a long-term investment in your business.
Logo Design is an Investment, not an Expense
I’ve been working with solopreneurs all over the world and it never ceases to amaze me how so many completely disregard the importance of design to the success of their businesses.
On the other hand, thanks to all of the feedback I get from these same people, I know exactly why they do it, and to put it simply, they lack the knowledge that would help them understand that a good logo is half the way to a well-crafted visual identity, and that paves the way to a strong brand, which in turns attracts and retain costumers.
Ask yourself this question: Why big businesses spend millions of dollars every year on logos for their products and services if that was not important? Think about that for a moment. Why do they do it? There is a reason for it, and I’ll tell you why, the reason, of course, is that investing in a well-crafted logo improves their bottom-line results.
The most important concept to understand is that when you “spend” money on the design of a logo, identity visuals, or any other branding effort for that matter, you are actually investing in the success of your business, and for a matter of fact, you are literally increasing the value of your own business.
Coca-Cola is the only non-tech brand to crack the top five, ranking No. 3 with a brand value of $54.9 billion. [source]
But increasing the value of your business is not the most important reason why you should invest in a professionally designed logo. The reason why you must do it, by far, is simply that a good logo is the first step in creating a brand that will attract more customers to your business, or in other words, it will make it more profitable.
In today’s highly competitive marketplace, all of your branding efforts help to differentiate your business from the rest. A well-designed logo will make you stand from the crowd, but also help you build a strong brand, which in turn allows you to charge more for your company products and services.
How Much Should I Allocate for my Budget?
Keeping in mind that any amount you invest in logo design is actually increasing the value of your business, then you should invest as much as you can possibly afford, but considering that your goal is not to increase the value of your business but to create a logo that fits your business and helps you create a strong brand, perhaps, the most appropriate question should be:
What is the sort of price range that would allow me to hire the best possible designer for my business while keeping my budget as small as I possibly can?
There are multiple ways to answer this question, and after many years working in this industry, here’s what I find to be the best approach:
- Create a list of designers that you believe to be the best fit to create a logo for your business. If you don’t know where to start, here’s a list of designers I know and recommend.
- Visit their websites and review their portfolios. When doing so, try to look for pieces which you think are similar to what you would like to see made for your own logo.
- Contact your 3 favorite designers, and ask them, what’s the most competitive budget they will be willing to work for a company that is just starting.
As soon as you get a reply from your 3 favorite designers, you will have the answer to your question. Your budget should be in between the smaller and the larger pricing you’ve got.
For the sake of reference, as of the writing of this article, I would advise that a good budget for a startup logo should sit between $1,000 and $6,000. Anything more than that and you will be paying for the premium of hiring a well-known award-winning designer, and anything less than that, you might end up with someone that doesn’t know what they are doing.
Now, you might be asking yourself, could I possibly pay less than that, and still get a great logo? Yes, but that means you need to approach this in a different way.
Working With Limited Budgets
You would love to working with a professional designer, but realized you can’t afford the budget. What should you do?
Well, first of all, you must ask yourself, are you sure you don’t have the budget for that? Are you sure you can’t rearrange your budget to invest more in branding and less in something else? Logo design is a one-time investment, and you are better off doing it right, first time, at the beginning of your venture to help increase your chances of success.
If you have already asked this question and the answer is big fat no, the next best thing is to pull up your sleeves and learn more about brand identity design on your own. If you have a better understanding of what is a good logo, and how designers create good logos, you might be able to either of the choices below:
- Hire a designer on a string budget.
- Design the logo yourself.
Either way, if you choose to go with the above options, you will be able to save thousands of dollars while also increasing the value of your business. Surely, this is the option to go for the savvy solopreneur out there, but beware, with this route, you might save the money, but spend more on the time.
Time is Not an Issue
But what logo design is never about, is time, and I urge you to not make this mistake. If an experienced designer takes 5 minutes to bring your vision to paper, it doesn’t make that any less worthy of a higher price tag. design a logo, it doesn’t make it any less worthy of a higher price tag. r 3 months to design a logo, t doesn’t matter how long does a designer, is time, so if you It’s never about how long it takes to design, but how much the buyer is willing to pay for it.
If that’s where you I’m here to help you understand how much you should invest, or better yet, why you should go for the professionals, and maybe, why you should consider the budget option.
If you are convinced that your business needs the help of an experienced team to create a professional looking brand, by all means, consider hiring us. I’ll be more than glad to help make your brand a success story, and we have a great deal of experience handpicking the best designers to match business needs.
Alternatively, you can look for designers yourself, but honestly, if it is hard for people with experience in this area to find good designers, I must warn you that you are up for a challenge.
Finally, if you are going to do this on your own, by all means, feel free to reach out. You can send me a tweet at @rayvellest with your question, or write your question in the comments area below, and I’ll answer it as soon as I lay my eyes on it.