Deciding how much to pay for a logo is one of the hardest parts of being a freelance designer. You want to earn more, but worry if your work is good enough or if clients think you’re too expensive. You’re hungry for more design assignments and want to find the right price for your logos, but finding a balance is difficult.
First, you need to get rid of that feeling of not being good enough, often called imposter syndrome. Remember, there will always be someone better. But that doesn’t matter because your unique style and creativity have their own value. If you know your business, you will certainly find clients who appreciate your work.
So what is the right way to price your logo? There are several methods and many things to consider.
What should I charge for designing a logo?
It’s hard to know how much to charge for a logo, or for any project. Think of it like determining how much to charge per hour.
If you’re just starting out, you shouldn’t expect to charge as much as a designer with ten years of experience, right? This makes sense and is a good starting point for pricing your logo design. But prices on the market vary a lot; some freelancers may charge $50, while some agencies can go as high as $50,000.
When I started, I only charged $150 because I was afraid to charge more. Now, with confidence in the value and creativity I bring, I can charge over $1,000 for a logo.
Many factors come into play, so there is no single answer. But I’m going to share some tips on what to consider and how to think about pricing for your logo design.
- Consider your level of experience, the complexity of the project, as well as the client’s budget and expectations when setting your price.
- Don’t underestimate your work or sell yourself short just to win a client.
- Be transparent with your client about your pricing and what they can expect in terms of deliverables and revisions.
Pricing Strategies for Logo Design
There are a few pricing strategies you can choose from for logos, and you can mix them up depending on the client. The main thing is to have confidence in the pricing structure you choose. I’ve tried a few myself. Consider using Millo’s independent price calculator to make your life easier.
Hourly rate for logos
Starting with an hourly rate is a good idea, so you at least get paid for your time. Underestimating the time it takes to create a logo can make you feel underestimated. When setting an hourly rate, think about each step of the design process. Use your past experience to estimate how long each part of the logo design took you.
For me, the steps usually consist of:
Research > Sketch > Typography and color discovery > Conceptualize > Create > Revisions > Finalize and deliver
These are the proper steps I go through to ensure I deliver a quality, well thought out logo that will fully represent the client’s brand. As you can see, it’s a lot of work!
If we take a closer look at these steps and roughly estimate the hours it takes me for each of them on an average logo design:
- Research: 1h30
- Sketch: 1 hour
- Typography and discovery of colors: 1 hour
- Conceptualize: 2 hours
- Create: 2.5 hours
- Revisions: 1-2 hours
- Finalize & Deliver: 1 hour
So when you add it all up, you get about 10-11 hours total. If you charge $50 an hour, that comes out to $500 – $550.
Your process may be different, so I suggest mapping out the steps like I did, estimating the time for each, then multiplying by your hourly rate to get your starting price for a logo.
But remember that this method only covers the time you spend designing the logo. This doesn’t take into account the value and expertise you bring to the final product. Let’s see that next.
Value-Based Pricing for Logos
Value-based pricing is a little different from hourly pricing because you charge for the value your logo brings to the client, not just the time you spend on it.
This means that you always think about how long it takes to create a logo, but you also consider things like who the client is, how the logo will be used, its visibility, its value to the client and the amount of revenue that ‘it could potentially generate. for them.
For example, a local pizzeria might need a new logo for its boxes, window display and some marketing materials. The logo is crucial to stand out, but their budget may be limited. So, you could charge them around $1,000, since the value of the logo to their business is large but on a smaller scale.
Now imagine that a large company like Frito-Lay asks you for a logo. This is a big deal! The logo will appear on millions of products across the country. The scale and value of this project is enormous, and the logo could significantly increase their sales. For a project like this, you could charge $15,000 or more. If you offered them $750, they may not take you seriously, thinking you don’t understand the scale and value of the project.
With value-based pricing, focus on the value of the logo, not just your time.
Things to include in your logo price
When pricing your logo, keep these factors in mind:
Time spent
Consider the total time from design to final delivery. Charging too little amounts to working for free, which is unsustainable.
Completion time
If the customer needs it quickly and it’s faster than your normal process, add a rush fee. It’s not ideal to create a logo in a hurry, so try to persuade them to give you the time needed for quality work.
Revisions
Set clear limits on revisions. Offering unlimited changes can reduce your profits. I usually offer two rounds, which is usually enough.
Your experience
Your experience is valuable. Even if you’re not the most experienced designer, don’t undercharge. Your skills and previous work matter a lot.
Software costs
Don’t forget to factor in the cost of the design software you’re using. This is part of your overhead and should be included in your price.
Complexity
Every logo project is different. Some require more complex designs or custom work, which should be reflected in your price.
Tips for Getting More Logo Design Work
Don’t lower your prices, adjust your deliverables
If a client wants a discount, offer fewer revisions or simpler concepts instead of reducing your price for the same package.
Offer packages
Create different logo design packages with varying deliverables and pricing. This gives customers options and makes them more likely to choose one of your services.
Be reliable and communicate well
Satisfied customers are your best advertisement. Keep them up to date, meet deadlines and provide excellent service in obtaining referrals.
Showcase your work on Instagram
Although it’s not your only marketing tool, Instagram is a great platform for displaying your creations and attracting potential customers.
Charge what you’re worth
Determining the right prices for your logo creation takes time and adjustments. But don’t be afraid to charge for your time, your talent, and the value you provide. If a client doesn’t recognize your value, they’re probably not the right fit for you.
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