Why A Cheap Logo Will Cost You Over $40,000

You’re probably already wondering how a cheap logo can cost you tens of thousands of dollars.

Think of it this way — remember the time you found those running shoes for like $8? They were super cute, but they fell apart after just a couple of runs. Logos can be kind of like that. If you go for the cheapest option, they might not last very long. But if you invest in a good logo, it can really stick with you for years to come. 

The value of a cheap logo can’t be compared to a quality logo — the former can ruin your brand’s image, while the latter can only improve it. You’ll understand what all of this means if you continue reading this piece. 

So, what insights will you find from this article?

• You'll understand why paying for a more expensive logo now is advisable and save money down the line. 
• You'll also see why cheap logos lead to rebranding which can cost more than $40,000 (or more for larger companies)
• Real-life examples of how rebranding can wreck your company's budget, explaining why you should invest more now to avoid such costly mistakes.

Let’s get right into it.

Why your logo is worth more than you think

Anything that has the word “quality” in it is better than the cheaper alternative, right? But jokes aside, there are countless reasons why quality logos are better than their cheap counterparts.

A logo maybe just a picture, but it’s a picture that truly grabs your audience’s attention. This simple image is what every client, customer, fan, and everyone else will associate with your brand. It will virtually become your brand, and without it, your brand won’t carry as much power as it can, not getting it right from the onset can be one of the biggest branding mistakes you can make.

But that's not all. A logo is:

• The Bedrock of Your Brand: It forms the very foundation of your brand identity.
• A Memory Maker: People will remember a strong logo long after they see it.
• Standing Out From the Crowd: A great logo sets you apart from the competition.
• Building Brand Champions: It encourages brand loyalty 

Now, you might be thinking, "Can't a cheap logo do the trick?" That's a great question! While saving money is always awesome, there are some reasons why a quality logo might be a better fit for your brand in the long run. Let's see why!

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Cheap VS Quality Logos
The logo design process is quite complex, and every graphic designer has their preferred method of conceptualizing it. However, a designer who makes a logo for cheap will not spend countless hours considering and designing the tiniest detail in the logo. If you don’t pay a good buck for the logo, you can’t expect the designer to get rid of a dozen or so drafts before they make the logo you are satisfied with. Most will just make a draft or two, and that’s all! Basically, the more money you pay, the more thorough the designer will be and the more ready to do whatever you ask from them and redo the whole process as many times as you deem necessary. 

Such a long creative process is entirely necessary if you genuinely want a logo that encapsulates your brand to its core. Naturally, there are cases where companies create massively impactful logos that do wonders for their brands, but this is entirely based on luck. What’s more, most of these occasions are extremely rare.

The best example is Nike. The activewear manufacturer’s logo is known throughout the world and yet it costs only $35 to make! Namely, Nike’s co-founder, Phil Knight, bought the famous Swoosh logo back in 1971 from a student of graphic design. 

But hey! We can’t all rely on having such luck as Nike, so it’s best to stick with quality logos that rarely lead to costly rebranding campaigns. 

In most cases,  a cheap logo is just a logo. You don’t get to form a relationship with the designer, and they won’t spend countless hours studying your company and getting into the right mindset to even begin making the first draft. Most cheap logo designers merely create a logo based on limited knowledge about your brand, and they are done with it. They don’t consider where and how the logo will be used and will the current design will fit into the situation. 

So, what does this all mean? When you invest in a quality logo, you're not just getting a cool image – you're getting the expertise and service that goes into making it shine. A well-crafted logo becomes an extension of your brand, working seamlessly to build recognition and trust with your audience. It's like the perfect teammate, always there to support your brand's success!

Logo vs. Brand Identity: What's the Real Difference?
Many business leaders mistake a logo for their entire brand identity. We're here to show you why a logo is just one piece of the puzzle!

To begin with, a logo encapsulates your brand in a single, simple image that everyone can remember and connect to your brand. However, a brand identity is a lot more than that single image.

Think of your logo as a superhero's costume – it can definitely grab attention, but without superpowers, it's just fabric. The same goes for logos and brand identity. A well-designed logo is important, but it needs a strong brand identity behind it to truly shine. Your brand identity is what your company stands for – its values, goals, and personality. When your logo is built on this foundation, it becomes more than just an image – it becomes a symbol that resonates with your audience. Hence, it is safe to say that it is important to first develop a proper brand identity before you commit to a quality logo design. A good brand identity guide can help you create a great logo, but it will also save you time and money by pointing your brand in the right direction.

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Logo Design Use Cases
There are countless cases when it comes to small businesses, but on average, every quality logo brings with it a sizable price tag. However, the logo each of these businesses got was more than worth it as it brought better brand recognition and eventually higher earnings. On the flip side, companies that skimp on their logo often end up needing a whole rebrand later. These rebranding campaigns can cost tens of thousands of dollars – yikes! So, think of it as paying a little now to save a lot later.
For example, Pepsi paid a whopping $1,000,000 for its new logo in 2008. The company is big and was big at the time, so paying such astronomical amounts wasn’t a problem. But many other companies aren’t as lucky. 

British Petroleum paid more than $210,000,000 for its logo. It’s one of the most expensive logo redesigns in history, and it didn’t even bring the results the executives were hoping for (let's just say it backfired in a big way). The idea was to appeal to people who care for the environment, but it achieved the opposite effect, with the sort of hating the brand more. These are extreme cases, for sure, but they show just how expensive a bad rebrand can be. Nobody wants that kind of financial headache, right? So, let's chat about how to get your logo right the first time!

How Much Should You Pay for a Logo?
A typical small business will pay anywhere from $0 to several thousand dollars for a logo. A high-quality logo will have to cost at least $1,000. However, once you consider how expensive rebranding is, paying a few thousand now is practically nothing. There’s no exact price that you need to pay if you want a quality logo, as the final price depends much on the agency or the person you're hiring and what your demands are. 

If you opt for a single freelancer, the cost is much lower, but the results will not be as great as they would be if you hired an agency. There’s a big chance that the freelancer will produce great work, but you will have to hire a more experienced graphic designer who will cost as much as an average agency would. 

Just consider the famous case of the NeXT logo.

Back in 1986, Steve Jobs paid $100,000 for a logo for his new company. He hired a renowned graphic designer named Paul Rand, whose task was to create a new logo for the burgeoning company. Rand took it seriously and created a whole 100-page proposal book for the logo. 

The logo didn’t end up being a classic, but it’s certainly a great example of how the designer should first truly understand the company before they create the logo. You don’t have to pay as much, but you really should consider hiring someone who will do the job in such a detailed manner, and a creative agency will always be a great choice. In most cases, this will cost you a few thousand dollars, but the results will be more than worth it. 

Get a Quality Logo with NUEX Creative
At NUEX Creative, we get it. You're a small business owner, not a tech giant. That's why we specialize in creating powerful, memorable logos that won't break the bank.

We believe amazing design shouldn't cost an arm and a leg. That's why we find the sweet spot between affordable and impactful. A logo you'll love, without the risk of needing a rebrand later.

If this is something you need, feel free to reach out and let us know. We'd love to chat and see how we can help your business take flight! And hey, the first consultation is completely free, so there's nothing to lose!

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