A logo is an important representation of your business and it is definitely worth an investment, but many businesses have a hard time knowing just how much they should be paying. There are many components to the logo design process that need to be considered as well as the type of pricing format you are going to choose and the level of expertise of your designer. In this article, we’ll go over some basics so you can get a better grasp on where your logo budget should be set.

Cost Components of a Logo Design

First things first, you need to understand what you are paying for. What goes into a logo design? Here is a breakdown of the steps in the logo design process and how much time they take on average. Our process is in alignment with information you can find by other experts in the industry quoted here and here.

The Initial Brief and Planning Phase

A logo designer will need to interview you at the start of the process in order to write a creative brief that outlines your needs. This is where your needs (link to the 10 things businesses should know before designing a logo article) are described to the designer, the amount of revisions are agreed upon, an ideal timeline is discussed. This takes time (on average 3 hours).

Researching Your Business

In order for the designer to create the logo you need, they need to take the time to research your business, understand your market and target audience, and gain a good understanding of each point outlined in your brief. If you have been in business for quite a while, they may want to perform a full background study, while if you are a newer business they may require interviewing you or acquiring company brochures/background information. The more prepared you are in the initial brief, the easier you will make this research phase on your designer, and the better final result you will likely get. Research will likely take an average of 6-7 hours.

Creation

Logos tend to be the product of a brainstorming process as design is a form of art. It can take a while to get the perfect combination of colors, graphic, typography, and layout. The time it takes to brainstorm and develop ideas should be considered when setting your budget, as this can take several hours or days to complete. While every designer’s creative process will vary, on average this will take about 6-7 hours.

First Review and Feedback

Once the initial drawings are finished, they will be presented to you for review. Some revisions may be necessary. If there has been good communication prior to the design, these revisions are likely to be minor. You will take the time to review the logos with whomever needs to see them and decide on if you need changes. Feedback will then be provided to the designer and directives on any changes you want.

Creation Revision

Then the designer will go back to the drawing board. It’s difficult to predict how long revisions will take as it depends on how many changes or alterations are needed. There may be a number of revisions requested over a period of time, or none whatsoever. Remember, you should have agreed upon revisions up front so be sure to outline your needs and change requests wisely. Revisions shouldn’t take more than 6-7 hours on average.

Final formatting to deliver the logo

When the logo has been revised and approved, the final logo design will be ready. You may need it in a variety of formats, for example, for your social media page and website banner. It takes time to perform the final steps of formatting the logo into the different formats so ensure to factor in an average of 3 hours for this step.

While this may vary, a logo design should take 20-30 hours of time on average. So now let’s look at the different ways of billing.

Billing Methods for Logos

Fixed Prices

After agreeing on the specific requirements for the logo, you can discuss a fixed price for the entire job. You’ll need to understand how long the project is likely to take the designer and how they need to be paid to fairly compensated for that time. Keep in mind fixed pricing can vary greatly depending on if you are working with a designer working alone ($250-$2500), or say, a designer working with a professional agency ($1000-$5000).

Hourly Rates

Each designer or design company has their hourly rate based on several factors, such as how many years of experience they have and which State they live in. You will want to weigh the costs with the value you will be getting to choose the right designer. The average hourly rate in the USA charged to clients is $57.68, at an average of 25 hours you are looking at an average cost of just under $1500. However, as stated above, costs can vary based on if you are working with an independent designer or professional agency. When going the hourly route, be sure to discuss and agree upon the estimated total hours that will be spent so you don’t end up being way over charged.

Contests

Design contest websites, like 99designs featured above, are a completely different approach to getting a logo for your business. They have you outline your needs and offer a large number of logo designs for you to choose from. This tends to be a cheaper and easier option, but may not have the customized quality that you are looking for and lacks the collaborative revision phase. However, it can be a good way to brainstorm and you might get lucky. For more on the pros and cons, see our blog comparing design contests to customized design.

As you can see, a logo’s cost depends on many factors, such as the experience of the designer, where they are located, if they are part of an organization, and how long their work process takes. As a business owner, your best bet is to plan ahead and form a clear idea of the parameters you want your design to follow. Then, be sure you understand the steps of logo design and discuss these in depth with your designer so you are both on the same page. Know the average pay in your area for professionals with a range of experience and affiliations and quote your project accordingly. With a bit or research and strategic planning, you can get the logo you want at a fair price.