Like a fingerprint, every logo is one-of-a-kind. This makes setting a fixed rate almost impossible because there are different factors to consider for each logo project.
From the average person's point of view, it may look like creating a logo is a two-step process. Meet with the client and then take a couple of hours to design, right? No. As a creator, you know there's time and planning involved before actually creating a logo. You evaluate your client's brand, look into their industries and competitors, and draft ideas — to mention a few.
When you’re deciding how much to charge for a logo design, there are two main variables: how much time you spend working before the actual design and how many revisions you go through. Here’s how to take them both into account when calculating your rate.
Say a company wants to hire you, and they already have a defined brand identity and their logo concepts figured out. That’s less work for you, but it also means you won't be able to charge as much. If, on the other hand, they're looking for your insight on their vision or a collaborative effort, you'll have to put in much more time — and charge more.
Logo designer Ted Chartrand says that his rates depend on how much back-end work he has to put into a project. “If clients come to me thoroughly prepared with specifics about who their target market is, what feelings they wish to evoke with the logo, and what inspirations they want to draw from, I am able to reach their ideal design in much fewer revisions.”
Identifying the state of each client’s brand and logo concept is crucial. It will determine how much to charge based on the time and work you will have to invest before jumping into their design.
Do you know if your client has the visual elements, typography, and colors figured out? If they plan to leave brand creativity up to you, incorporate that when deciding how much to charge for a logo.
Amy De Wolfe is a freelance graphic designer who caters to solo entrepreneurs. She determines her logo design rates differently since she has a niche clientele — women in the process of launching small businesses. Amy used to only include a logo; however, she now provides additional resources — color palettes, font guides, and brand guides — to help her customers establish their brand identities.
To determine the cost for her services, Amy “offers a package price or her retainer program, giving clients a discounted monthly rate for locking in a certain amount of minimum work per month.” This deal encourages clients to collaborate with her because she helps them get to where they need to be for a great set price. Her organized process will lead to referrals. That builds her reputation, which allows her to increase her rates going forward.
Aside from package prices, an hourly rate is a good tool to determine how much to charge for a logo. It also offers flexibility. If you’re fairly new at creating logos — charge $25 per hour. If a logo usually takes about four hours to design, that’s $100 per logo before any other service is added.
If you charge $100 for a logo design for clients that already have a solid brand identity, the price should be higher for blank canvas clients striving to be recognizable. In those cases, charge for each hour it takes you to work on their brand identity. For two additional hours, that’s a total of $150. Three additions hours total to $175, and so on — $25 per hour for the time you spend establishing rates.
These rate examples may seem low, but remember, there are often other factors to consider that add up quickly, like logo concepts.
So you’ve established the company details and know whether or not you will need to identify a client’s brand. Now, let’s get into the specifics of what clients want their trademarks to look like. Some have a clear vision, while others may have a blank slate.
You can charge for each hour you spend designing concepts the same way you’d charge for any other part of the process. So, continuing our example: two hours designing concepts, two hours designing a brand identity, and four hours designing the logo itself would come to $200.
For clients that request multiple logo concepts, the versatility helps them choose the one. The more logo concepts you provide, the more you can charge. In contrast, some clients may have inspirations they want to pull from. This helps you speed up the process of creating logo concepts.
Revisions are vital to the process of creating logo designs. If clients are clear and consistent from the beginning and throughout the process, that can eliminate the back-and-forth “that’s not what I meant” situations, and there will be fewer revisions overall. Sometimes revisions happen simply because of a client’s indecisiveness, which you can charge for as well.
If you only offer a set round of revisions, know that your flexibility in establishing rates will be limited. For instance, say a single revision takes you one hour. Based on the above example of including four logo concepts for $200, you can charge $250 for a logo design with two revisions. Customers that are more established may be better off accepting your offer of limited revisions. Customers that are in the beginning stages of developing their brand may opt for more edits.
Freelance marketplace Fiverr allows freelance graphic designers from around the world to present their rates and include what is provided in each package. Rates on their website tend to be much cheaper because it's a huge market. Freelance logo designer Tatiana Cobra offers three prices for her logo designs. Her basic package includes one revision for $80, the standard package allows two revisions for $150, and the premium offers three for $220.
The more transparent and informative you are upfront about your rates with revisions, the easier it is for your clients to decide which option is best for them. This clarity will ensure a smooth collaboration because they’ll know how many revisions they can expect.
There are pros and cons to providing unlimited revisions for logo designs.
On the bright side, they allow you to charge more. For a client to feel completely confident about their logo design, this is the route to go. It makes a great impression and guarantees customer satisfaction. This adds to your reputation and credibility, which allows you to increase your rates in the future.
But be careful when offering potentially endless edits. It can be a tough trail to go down if clients can’t make up their minds or lack a brand identity. A set rate, in this case, if abused, will rob you of your time and value. The tedious time you spend revising one design could be applied to other logo design projects.
Including all the factors mentioned, let’s say your charge $50 extra for two revisions, $75 for three, or $125 for unlimited. Someone can easily take advantage of the third option. One client may ask for three revisions, while the next may ask for six — the same price for twice the work.
Contracts set the bar for establishing what rate you should charge for your logo projects.
They outline all the details, from research to execution, and set expectations. They are customizable and help you remain professional and protected. If you are looking for guidance on how to create one or what to include, there are helpful templates to guide you in creating the perfect one for your client.
While outlining all the details of the logo designing process, it can be hard to track every moment invested. Using a robust time tracker provides an accurate workflow and accommodates whichever way you choose to charge.
A verbal contract (formally called an oral contract) refers to an agreement between two parties that's made —you guessed it— verbally.
Formal contracts, like those between an employee and an employer, are typically written down. However, some professional transactions take place based on verbally agreed terms.
Freelancers are a good example of this. Often, freelancers will take on projects having agreed on the terms and payment via the phone, or an email. Unfortunately, sometimes clients don't pull through on their agreements, and hardworking freelancers can find themselves out of pocket and wondering whether a legal battle is worth all the hassle.
The main differences between written and oral contracts are that the former is signed and documented, whereas the latter is solely attributed to verbal communication.
Verbal contracts are a bit of a gray area for most people unfamiliar with contract law —which is most of us, right?— due to the fact that there's no physical evidence to support the claims made by the implemented parties.
For any contract (written or verbal) to be binding, there are four major elements which need to be in place. The crucial elements of a contract are as follows:
Therefore, an oral agreement has legal validity if all of these elements are present. However, verbal contracts can be difficult to enforce in a court of law. In the next section, we take a look at how oral agreements hold up in court.
Most business professionals are wary of entering into contracts orally because they can difficult to enforce in the face of the law.
If an oral contract is brought in front of a court of law, there is increased risk of one party (or both!) lying about the initial terms of the agreement. This is problematic for the court, as there's no unbiased way to conclude the case; often, this will result in the case being disregarded. Moreover, it can be difficult to outline contract defects if it's not in writing.
That being said, there are plenty of situations where enforceable contracts do not need to be written or spoken, they're simply implied. For instance, when you buy milk from a store, you give something in exchange for something else and enter into an implied contract, in this case - money is exchanged for goods.
There are some types of contracts which must be in writing.
The Statute of Frauds is a legal statute which states that certain kinds of contracts must be executed in writing and signed by the parties involved. The Statute of Frauds has been adopted in almost all U.S states, and requires a written contract for the following purposes:
Typically, a court of law won't enforce an oral agreement in any of these circumstances under the statute. Instead, a written document is required to make the contract enforceable.
Contract law is generally doesn't favor contracts agreed upon verbally. A verbal agreement is difficult to prove, and can be used by those intent on committing fraud. For that reason, it's always best to put any agreements in writing and ensure all parties have fully understood and consented to signing.
Verbal agreements can be proven with actions in the absence of physical documentation. Any oral promise to provide the sale of goods or perform a service that you agreed to counts as a valid contract. So, when facing a court of law, what evidence can you provide to enforce a verbal agreement?
Unfortunately, without solid proof, it may be difficult to convince a court of the legality of an oral contract. Without witnesses to testify to the oral agreement taking place or other forms of evidence, oral contracts won't stand up in court. Instead, it becomes a matter of "he-said-she-said" - which legal professionals definitely don't have time for!
If you were to enter into a verbal contract, it's recommended to follow up with an email or a letter confirming the offer, the terms of the agreement , and payment conditions. The more you can document the elements of a contract, the better your chances of legally enforcing a oral contract.
Another option is to make a recording of the conversation where the agreement is verbalized. This can be used to support your claims in the absence of a written agreement. However, it's always best to gain the permission of the other involved parties before hitting record.
Fundamentally, most verbal agreements are legally valid as long as they meet all the requirements for a contract. However, if you were to go to court over one party not fulfilling the terms of the contract, proving that the interaction took place can be extremely taxing.
So, ultimately, the question is: written or verbal agreements?
Any good lawyer, contract law firm, or legal professional would advise you to make sure you formalize any professional agreement with a written agreement. Written contracts provide a secure testament to the conditions that were agreed and signed by the two parties involved. If it comes to it, a physical contract is much easier to eviden in legal circumstances.
Freelancers, in particular, should be aware of the extra security that digital contracts may provide. Many people choose to stick to executing contracts verbally because they're not sure how to write a contract, or they think writing out the contract terms is too complicated or requires expensive legal advice. However, this is no longer the case.
Today, we have a world of resources available at our fingertips. The internet is a treasure trove of invaluable information, platforms, and software that simplifies our lives. Creating, signing, and sending contracts has never been easier. What's more, you don't have to rely on a hiring a lawyer to explain all that legal jargon anymore.
There are plenty of tools available online for freelancers to use for guidance when drafting digital contracts. Tools like Bonsai provide a range of customizable, vetted contract templates for all kinds of freelance professionals. No matter what industry you're operating in, Bonsai has a professional template to offer.
A written contract makes the agreement much easier to prove the terms of the agreement in case something were to go awry. The two parties involved can rest assured that they're legal rights are protected, and the terms of the contract are sufficiently documented. Plus, it provides both parties with peace of mind to focus on the tasks at hand.
Bonsai's product suite for freelancers allows users to make contracts from scratch, or using professional templates, and sign them using an online signature maker.
With Bonsai, you can streamline and automate all of the boring back-office tasks that come with being a freelancer. From creating proposals that clients can't say no to, to sealing the deal with a professional contract - Bonsai will revolutionize the way you do business as a freelancer.
Why not secure your business today and sign up for a free trial?