With all the noise online surrounding branding and marketing it can be hard to know what a good price for a brand logo should be? So let me break it down for you in this blog post so you know how much a logo should cost!
Whether you are a business owner or a logo design in the making, it can be hard to know what you should have to pay for a logo or brand identity package in 2024.
You see some designer charging $50 for a logo but also see multi million $$$ companies paying upwards of a million for a logo!
Surely there is a way to figure out how much it should really cost?
Well, keep reading and I will explain how this all works.
1. Branding doesn't have physical value
Unlike other trades, design and branding don't have an immediate return on their investment.
If you hired a plumber out to fix your toilet you would know straight away if you got the result you were looking for. So how do we value the worth of a logo?
Well to start we need to figure out what the logo and brand identity will actually do for your business.
Why are you getting the logo is it to heighten your reputation? Build trust? To make you look more professional?
This is the first question you need to ask yourself.
2. Why do I need a logo?
A logo and brand identity aren't just design purposes. They are the first recognisable feature your customers will see when they research your business.
So making a good impression with a unique, professional logo can be the difference between a customer being a one time buyer or a loyal customer.
So really think about how valuable that could be for the growth of your business.
3. Let's get some perspective
If you are currently making $100,000 a year through your business without a logo or brand identity it is fair to assume the customers care only about your service.
This is fine but it limits your growth.
If a business does the same service but for cheaper, or have worked on their business identity it can take customers away from your business.
So you need to be ready to fight for those customers.
4. Look at the big industry
Companies like Apple and Nike sell products that are not unique to others in their industries.
Yet they out compete them all year on year.
They do this by investing heavily in a strong brand image. When you buy from Apple your are buying status and creativity not a phone.
And your business should be holding values like this in your brand.
That is how you get more customers to buy!
5. Word of Mouth
Marketing is great but as soon as you can't spend any more money on ads the sales will dry up.
This is where word of mouth marketing becomes key.
Customers are more likely to buy from your business if they have been recommended by a friend.
You do this by making your brand so memorable and valuable that they have no choice but to talk about you!
And this could increase your sales on average 10% - 30%!
6. So what does it all mean?
If we take the lowest possible value that a strong brand can bring you and call it 10%.
That means if your business was making $100,000 a year, the logo has now increase your sales by $10,000.
In my experience you usually want to be paying a 10% - 20% of your returns for a logo so that would value the logo at $1000 - $2000!
The best news about this is that your brand can bring your compounding returns over the years! So it could be worth a lot more 10 years down the line!
So how much would you pay for these returns?
Every business needs a brand and they will pay in accordance to how much they think they will make from it.
So don't cheap out on a logo and brand identity!
A great brand identity can 10x your business but a weak brand identity can do the opposite!
If you want more branding tips that have helped me create timeless brands, I have an ebook that you might like to check out!
Thank you for reading this article
Benjamin Pearson | Founder