How to Create a Logo Design Budget [With Template]

Logos should be a top priority for any startup or for businesses planning to undergo rebranding. Undermining the value of well-designed logos can hinder your brand from getting the attention and recognition it needs.

Compelling logos can help brands become more memorable and allow them to stand out even on crowded shelves or in grocery stores. It’ll be everywhere as the business grows — from business cards to billboards.

If you’re running on a tight budget, it can be tempting to download free logo makers and simply use logo templates to save resources. But that’s not the way to go!

Yes, you can use plenty of free tools to avoid spending a dime, but the personal and professional touch of an experienced logo designer hits differently.

For most small business owners and startup founders, determining how much to spend on logo design services can be tough. This detailed guide will help you assess all the factors that go into the final price tag and help you prepare an appropriate budget for your project.

Connect with the leading logo design agencies on Clutch and get the most our of your budget.

What Goes Into a Logo Design Budget?

Before anything else, the first thing you need to know when drafting a budget is what goes into it. Understanding the scope of a logo design project can help you get an idea of how much you should spend and what to prepare for.

When you hire a dedicated logo designer, you can expect them to guide you through the following steps:

• Research is the very first stage that is essential to know the common design elements and approaches used by similar brands in the industry. Great logo designers don’t immediately jump into the design process without studying the brand identity of their clients, the competition, and their market. They take a moment to evaluate a company, its goals, and what kind of business logo works well for it.
• Brainstorming takes all the information and insights gathered during the initial research to discuss possible design philosophies and strategies. The process starts by listing ideas such as color, symbols, and shapes and then evaluating which ones work best together. When you hire a dedicated logo designer, they have experience gathering many inspirations and assessing which to cut and go with.
• Sketching ideas is where you distinguish the best designers from the beginners. Skilled logo designers can combine the ideas from the brainstorming sessions and produce many different sketches. They don’t get stuck on just one concept. In fact, they can create wildly different sketches — from letterforms to emblems.
• Design is the next step once you choose which sketch to follow through. If you hire a logo design partner, they’ll use professional vector software to create your drafts from scratch. The outputs they’ll create here aren’t final yet,, but it’s where they start to breathe life into your brand.
• Presenting involves the logo designer discussing the features and general idea of the logo. In this part, they go over points such as how the design meets the goals, how it differentiates your brand, and how to use the logo on social media and marketing materials. Additionally, they will show how the logo looks on different mockups.
• Revision comes after the presentation if the client has some notes and requests. Sometimes, it’s hard to have a breakthrough in logo design, and the designer may not instantly click with the client. If you want major changes, the designers often present three concepts that they’ll follow for the revision. Depending on your contract, the vendor typically offers two to three rounds of revisions.

There are a lot of things going on in logo design. It’s not a simple process of combining fonts and symbols. The entire process is systematic, disciplined, and meticulous.

Of course, not all businesses have the same experience when designing a logo, but consider these steps when considering what goes into hiring an agency and budgeting.

How to Create a Logo Design Budget

1. Define Your Business and Logo Objectives
2. Lay Down a Timeline
3. Consult Reliable Logo Designers
4. Consider Font Costs
5. Filling for Copyright and Trademark

1. Define Your Business and Logo Objectives

There’s no definite answer to how much logo design costs, but the first step to preparing a budget is understanding your business and defining your objectives for your logo.

For this first stage, you can consult your leadership team or marketing head and ask for help outlining your priorities. The best way to accomplish this is to ask yourself crucial questions.

Do you only need a simple logo? Or do you need a top-to-bottom logo and branding packaging? Creating an entire logo and branding package will cost more than simple designs.

Do you need an entirely new logo? Or do you only need to refresh it? Designing from scratch will typically cost more than refining and updating your existing logo.

How do you intend to use the logo? Will you need IP protection? Understanding your objectives and setting your priorities will not only help you create a budget but will also allow you to communicate your project clearly with designers when you consult with them.

2. Lay Down a Timeline

The timeline for your project indicates how much you should spend on it.

Typically, businesses that hire a full-service agency understand that it’ll be a longer turnaround time because those service providers go through extensive processes when designing a logo. They allocate sufficient time for proper market research, sketching, and revisions.

Moreover, businesses that need tighter turnaround times tend to go with freelancers who can work and deliver quickly. High-end agencies can do that too, but hiring them for rush projects can come with additional fees.

As you sit down with your team to discuss the ideal timeline for your logo design project, remember that factors such as the type of logo and the number of revisions also influence it.

3. Consult Reliable Logo Designers

Unless you have an internal graphic designer, you’ll most likely need the expertise of a logo design service provider.

Experienced logo designers know different design methodologies, types of logos, and software. Hiring them can give you peace of mind and ensure you get the unique logo you need for your brand.

Consulting freelancers and agencies on how much your project will cost will give you the most definite answer.

With the priorities and timeline you’ve outlined, describe the scope of your logo design project to them. They can give you an estimate or quote based on your requirements.

When you inquire about their fees, make sure you ask for details on their pricing structure, the scope of their services, and how many revisions they offer.

One of the most common ways to reduce costs when hiring a logo designer is to find an off-shore partner. Rates in locations such as North America and Western Europe are usually higher than in Southeast Asia or Eastern Europe. You can get the same scope and service by hiring outside your area.

4. Consider Font Costs

As mentioned, a professional logo design agency typically delivers more than just a logo. An example of additional costs is the top-to-bottom branding packages or brand guidelines they can develop for your logo.

Moreover, fonts can also contribute to costs. Yes, there are countless free fonts available on the internet, but you can’t use those to create a commercial logo.

If a client needs a font, they must purchase it and get the licenses to legally use it on their logo. Failing to acquire proper licenses can lead to headaches and even lawsuits.

Experienced logo designers sometimes avoid licensing troubles by creating a bespoke font for their clients. That custom font will be part of the overall branding package, but will also cost more to create and refine — it’s the approach most favored by bigger and more known brands. 

5. Filling for Copyright and Trademarks

One of the biggest questions when it comes to logos is do you need to file for a copyright or trademark — the answer is always yes.

As a business owner, it’s your responsibility to protect your business in every way possible, and that includes intellectual property protection.

To give better context, a trademark secures your business from competitors that intend to confuse your customers by infringing on your logo. Meanwhile, copyright protects your logo design against unfair, unauthorized, or outside use and copies.

Some logo design agencies offer IP filling services or assistance, but most freelancers don’t. If they don’t provide assistance, then you can opt to hire a lawyer to handle the process. 

Logo Design Budget Template

Download our logo design budget template.

Factors that Affect Logo Design Costs

Logo design projects don’t have to cost an arm and a leg. Regardless of hiring a well-known agency or freelancer, make sure you know where your money is going and what you should be getting.

Here are the main factors that influence logo design pricing:

• Design process
• Expertise and expertise of the designer
• Location
• Number of revisions
• Types of mockups needed

Be sure you weigh each one carefully when preparing a practical budget for your project.

Foster Brand Loyalty with a Great Logo

Your logo should communicate your values, qualities, and message. Great logos are a source of pride, trust, and integrity for businesses. It’s the face of your brand, and it’s what customers remember at the end of the day.

Investing in high-quality logo design is a must, but you don’t need to spend a good chunk of your resources on it. Knowing all the processes that go into logo design services and the factors that affect costs will help you prepare a realistic budget.

Work with a reliable and proven designer to help you transform your ideas into a great logo. Match with the top logo designers on Clutch by maximizing the filters we’ve prepared and reading the client reviews we’ve collected.