How do you even go about determining your logo design pricing? You hear there are agencies charging $100,000+ for brand identity design and then there are sites like Fiverr that are a race to the bottom. Where do you fit along the logo design pricing spectrum? And how can you price your designs so your clients receive value and you can pay the bills (and then some)?
Not a logo designer and looking for ways to price your other creative services?
Then this guide is for you, too!
When we say logo, just insert whatever you provide: copywriting, UX/UI design, social media marketing- you name it and this guide will help you price it!
So you’re a business owner and stumbled upon this article hoping to find some info on how much a logo will set you back.
Welcome- we’re happy you’re here!
The first thing we want you to think about (beyond your budget- we’ll get to that) is why do you need a logo?
What business problem are you hoping this new logo will solve?
How will you measure the success of the logo once it’s implemented?
And speaking of implementation, where is this logo going to go? Will you need additional logo variations, a new color and typeface system, illustrations and patterns, and a brand style guide?
Before you go searching for a logo designer and wondering the price, think about the added value that this logo will bring to your business.
From there, look for designers who not only have the portfolio that speaks to your business but also talk with you about the problems the logo will solve.
The more value the logo and possible new identity system brings to your business, the more you can expect to pay.
Designers at Fiverr are not going to worry about solving big business problems. They’re just going to give you a logo that may (or may not) meet your business goals.
And if your new logo isn’t going to solve a big business problem, is it even worth it to have a new logo designed? Is there any other area in your business that needs more attention?
But let’s say this new identity system is really going to move your business forward.
Perhaps there’s a disconnect between the image you’re achieving and the image you want to portray to attract new customers.
Now that’s worth paying attention to!
So how much will it cost?
It really depends on the designer- their experience, their level of specialization in a particular style or industry, and their demand.
It really could be anywhere from $3,000 for a single logo mark to $100,000+ for a new identity system.
We encourage you to look to sites like Behance and Google "brand identity designers" in your particular industry to find the right designer to help you achieve your business goals.
And if you end up going with Fiverr, just remember- you get what you pay for.
Why is it that some designers are able to charge ten and even one hundred times more than others for a logo design?
You’ve got to start thinking about the value that the logo will bring to the client.
On one end of the client spectrum are large corporations.
There’s a lot of risk involved on their end when it comes to implementing the new logo.
What if something goes wrong? Think of all the places that logo could be placed and printed and how much money’s at stake if the rebrand doesn’t go well.
While a new logo and brand identity doesn’t necessarily guarantee a positive impact on the company, it can definitely have a negative impact.
So corporations are looking for the least risky option. They’re looking for agencies and designers with a track record of success with the type of logo design they need and they will have higher budgets.
Actually, not charging enough with these companies will make you look risky.
Now on the other end of the spectrum are the mom and pop shops. Smaller businesses.
Logos might only appear on a website and a few other touch points, such as signage and social media- maybe a bit of packaging but they won’t have a large printing budget.
For these types of businesses, the risk isn’t as high because if the logo design goes wrong, the fix is easier. So the logo isn’t as valuable. Meaning the budget won’t be as high- they’ll be looking for designers with lower logo design pricing.
But even if you’re pricing with smaller mom and pop shops or large corporations, all clients want to know that you’re the least risky option.
Want a deep dive with Chris Do on logo design pricing? Then check out this popular video where he discusses how you can start talking business with your design clients.
Because clients want to know you know business and not just logo design if you’re going to command a higher rate.
Clients will be looking at:
Now that we’ve gone over what the client needs, now let’s talk about what you need.
Gone are your days of just slapping a price on a logo based on a gut feeling and then lowering it as soon as a potential client says it’s too much.
You’ve got bills to pay!
So you’re going to figure out your minimum level of engagement for design projects so you’ll know exactly what you need to bring in with each project.
Now let's look at three logo design pricing models for you to consider.
Think of pricing inputs as your hourly or day rate and then some.
We call it cost plus.
Because you really should be charging your hourly or day rate, plus your overhead, miscellaneous fees, and adding on room for profit.
Now this can get a bit confusing and isn’t something we recommend for logo design pricing.
If you’re interested in this method, we have a video from the Futur Pro Group archives in which Chris Do walks members through how to create an inputs-based bid for a motion graphics project.
But like we said, this isn’t what we recommend for logo design pricing because charging by the hour or by the day often penalizes you for being efficient.
So let’s move on to a logo design pricing model that will be much more effective.
This is the logo design pricing model that will most likely be the easiest to wrap your head around.
You and the client determine the scope of work and you're paid for those deliverables.
This is great if you’re efficient- you can get the work done quickly, not have to worry about an hourly rate, and can move on to the next job.
Pricing by outputs will come back to haunt you if you don’t have a contract in place that specifically states how many logo options and revisions the client will receive, along with other terms and conditions surrounding how long clients have to send in revision requests and if there will be any overages if the project goes off-schedule due to the client not getting back to you.
So how do you determine the cost of your outputs?
Refer back to your minimum level of engagement!
Want to give the client more pricing options? Then check out the section in this article on price bracketing your logo designs.
Let’s just imagine a client scenario for a second.
Let’s say that a local bakery gives you a call looking for a logo.
They’re just getting started and have a limited budget but really want to get this logo right. It’ll go on their website, their signage, and stickers for their minimal packaging.
So you give a price of $5000 and they accept. All is right in the world.
Now the next day an organic food market gives you a call. They have a new line of juices that will need identity design. They’ll need multiple variations for the different juices in the product lineup, which will be rolled out to all their locations nationwide.
Would you give them the same price?
You could very well lose the job if you price too low.
This is where value-based pricing comes into play.
You start considering the value that this design project will bring to the client.
This means you’re going to need to have a conversation with your potential clients about their desired future state and how this logo fits into their business goals.
You’ll need to start asking questions such as:
This is where you and the client can start having a conversation around whether or not that percentage is disproportionate to the amount of value the logo (or any other creative service) will provide.
For instance, if a client says their identity design isn’t connecting with their target audience and they’re hoping to grow their revenue by $500,000 in the next year and they only want to spend $1000 on a new identity design, that’s only 0.2%!
Seems a bit disproportionate.
This opens up the conversation to negotiate if the client is reasonable.
We know, all this pricing strategy sounds really simple- in theory.
But how do you actually start talking about your logo design pricing with potential clients.
This is just the kind of thing we do on a regular basis in our Futur Pro Group.
We role play how to have value and pricing discussions, along with overcoming objections, on a regular basis during coaching calls with Chris Do.
So hopefully we’ve convinced you to either price by outputs or to try out value-based pricing. You pro, you!
So here’s our number one logo design pricing tip that’s going to set you up for success and help you quickly weed out the price shoppers and the bargain-basement clients.
Say your price on the phone with clients before you ever show it to them in writing.
This comes straight from Blair Enn’s book, Pricing Creativity.
We don’t want you to spend hours on a fancy proposal only to find that a client can nowhere near afford you.
And we don’t want you to wait until the second call with a potential client to start talking price.
First, it’s a matter of respect. For not just yourself but for the client.
You’re wasting both your time and there’s if you’re not getting down to business.
And speaking of business, it shows that you’re a real business person if you aren’t afraid to talk price up front.
Only amateurs will be put off by the pricing talk and the pros will be impressed.
Once you get a verbal agreement to your logo design pricing, then (and only then) will you send over a written proposal for approval.
Regardless of whether or not you’re pricing your logo (or any other design work) by outputs or with a value-based model, you want to talk price soon and often, and you want to anchor.
Price anchor refers to the practice of stating your highest possible rate first, followed by the low end of the price range.
For instance, your minimum level of engagement is $5000 for a logo but the price could increase, depending on scope, complexity, and number of revisions.
You’ll want to tell your potential client that, depending on the scope, a logo could cost anywhere from $20,000 to $5,000.
By stating the higher number first, you’re prepping leads with the maximum budget they’ll need. They’re going to get stuck on that number. Pause a sec and let them absorb that high number.
The state the lower price. They’re going to think the lower price is a bargain!
You’ll then want to ask if their budget will work with your price range.
If it does- awesome! You can move directly to price bracketing!
But what if it doesn’t? Don’t worry- we’re covering that in just a sec!
You know how you go to a lot of software and web applications these days and see various tiers of pricing?
There’s the standard, the deluxe (or most popular), and the all-star level.
This is price bracketing in action!
Price bracketing gives your potential clients something to compare you to- you!
Who needs to keep looking for other logo designers if you’re already giving them pricing options!
Need a bit more explanation? Then check out this inside peek at a Futur Pro Group Call where Chris Do runs through creating your pricing tiers.
It’s bound to happen, especially once you know your minimum level of engagement and treat logo design pricing as a way to build a thriving business.
Some potential clients will say your price is too high.
Now before we move on to how to handle this objection, know that one our favorite words is no.
You do not have to take any design job, especially if it’s not going to keep your lights on.
Saying yes to low-paying projects may seem like a short-term solution to bringing in more revenue, but at what cost?
For each low-paying client you say yes to, you’re saying no to opportunities that could really change the trajectory of your business.
And remember, before that low-paying client came knocking on your door, you were still going to figure out a way to pay the bills.
Now, before you start immediately saying no, here’s some pro advice from our Futur Pro Group member, Rodrigo Tasca.
“If they’re not meeting you at your price, you don’t have to meet them at their deliverable.”
You can still negotiate, as long as your minimum level of engagement is being met.
This could go back to your price bracketing.
Have you offered a lower tier package that does fit their budget?
Or could you ask for a revenue share of the project? Ask for a percentage of new clients’ revenue for a time-period and do the job for free. This is no risk to the client- but after hearing this proposal they might just be thinking twice about rejecting your initial pricing.
Want to see this kind of negotiating in action?
Then check out this role play with Chris Do and Futur Pro Group, Mo. This is the kind of work we do in the Futur Pro Group on a regular basis- helping our members sharpen their negotiation skills. This video has to do with video production but could easily be tweaked to work with logo design pricing as well.
It’s bound to happen.
A potential client won’t have the budget to hire you at your minimum level of engagement.
So they whip out the exposure-bucks negotiation tactic.
They’ll promise that this project will look so good in your portfolio and they’ll tell all their business buddies about you.
Okay, let’s take this one point at a time.
So the project will look good in your portfolio.
Yes- it might. But you need to remember that you’re in the problem solving business and the work you’re doing is important to the success of this client’s business.
You should get paid.
There are a couple of ways to look at the “this project will look good in your portfolio,” argument.
If this client is in the supply chain of the industry you’d like to work in, then yes. This project will look good in your portfolio. It will help build expertise. But just remember, just because a client doesn’t meet you at your budget doesn’t mean you need to meet them at their deliverables.
If this project will help you level-up your portfolio, then negotiate on the deliverables.
But then there’s the other side of the “this project will look good in your portfolio” argument.
What if this project isn’t going to build your expertise and get you an in in a particular industry?
You might as well do a passion project or a pro bono project in the industry you want to grow in rather than spend your time working on a project that’s not really going to do anything for your business.
Sounds like it’s time to move on.
Okay, so now for part two of the exposure bucks argument.
This project will lead to referrals.
You should be expecting referrals from your clients anyway. This shouldn’t be something you only get by lowering your price.
And think about the business buddies they probably have. Time to move on!
So if you’ve come this far, you may be wondering how to actually raise your rates.
Maybe you’ve realized that you are selling yourself short and not charging enough to either make ends meet or to compensate for the value you’re providing clients.
Sounds like it’s time to raise your logo design pricing!
Here’s how you do it in one step: Start negotiating as if you’re negotiating for someone else that you care about.
Imagine that you’re fighting on someone else’s behalf.
Get comfortable saying no if people can’t meet your pricing.
You don’t have to explain yourself.
Don’t be offended by clients with low budgets but also don’t feel guilty about charging what you’re worth and saying no.
The more you get paid by a client, the more they’re saying thank you. The more they’ll appreciate the work.
Just double your price tomorrow without explanation. No framing- don’t explain. If they don’t like it’s fine. Move on with your life.
Wondering how this is done in action? Watch Chris Do coach an illustrator through the process in this video from The Futur archives.
Demand drives price.
The more in-demand you are, the higher your logo design pricing can be.
So how do you create more demand?
Before we move into the not-so-magical formula for creating demand, let’s go over the basics.
Meet deadlines, show up to meetings, do what you say you’re going to do every single time.
Work on filling your portfolio will quality case studies that shows off what you can really do.
People won’t refer you and you won’t get continued work if you aren’t.
Now, if you check off all these boxes, you’re ready for the move that will really get you in demand.
So first and foremost- stay off of Fiverr and the like.
There's way too much competition for not that much return. You won’t hit your minimum level of engagement with these kinds of clients because anyone looking for that kind of a deal isn’t trying to solve a big problem in their business.
So how can you enter a market that isn’t so full?
You need to specialize. Become the logo designer for a particular industry.
It could be bakeries or architects or yoga studios.
Do some research and choose a viable market that you can dominate and your demand will increase.
Logo design pricing doesn’t need to be that complicated but there are a few things to consider.