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.
The Work Before the Design
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.
Establishment of Brand Identity
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.
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.
Limited Round of Revisions
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.
How Contracts Help Establish Rates
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.
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