$25 vs $25,000 logo, can you tell the difference?

What is the actual cost of a logo? 

Many businesses have an allotted budget of up to $1,000 for logo designs. But some are willing to shell out more than that to establish their branding from one essential visual. However, big-name brands can spend 10x more than that amount to differentiate themselves from the competition.

But how much should you really spend on a logo?

The $25,000 Question

The $25,000 figure is an estimate of what businesses can expect when getting a logo from agencies. That number can even go higher, as we discuss below. But that’s the average of how much a premium logo costs. However, logos can be as cheap as $25 (or even lower). This depends if the business uses a freelance graphic designer, DIY designer, AI designer, or design service.

Take a look at these two logos. One of them costs $25, while the other is $25,000. Can you tell which is which?

At first glance, you might think both. In truth, the one on the left is $25,000, while the other one is $25. A logo can become considered premium, especially if it was created by a reputable company, such as a professional design service or an agency.

Most Expensive (and Cheapest) Logos

It’s surprising to learn that businesses can spend up to $25,000 on one logo design. But $25,000 is a tiny fraction compared to what bigger brands have spent. Statista reported that brands spend an exorbitant amount to land on a logo that fits their identity. Notable examples include BP ($200,000,000), Tropicana ($35,000,000), and BBC ($1,800,000).

Although the chart lists Symantec as the most expensive logo. According to Think Marketing Magazine, the billion-dollar figure refers to VeriSign’s acquisition of Symantec, not the logo itself.

On the other end of the spectrum, we have the following brands with the cheapest logos.

• Twitter – According to Business Insider, Twitter’s first logo cost only around $15 in 2006. But here’s the catch, they bought a stock image to represent their brand. 
• Google – Think Marketing Magazine found that the tech giant’s first-ever logo cost nothing. Sergey Brin, Google co-founder, made the logo.
• Nike – The iconic Nike logo cost around $35 in 1971. This figure would amount to $260 in 2023. While that’s not less than $100, it’s worth noting that the Swoosh was a cheap logo.

That said, is it worth paying millions for a logo? Some brands have suffered blunders after spending millions on their new branding identity. Two companies come to mind.

The Gap logo is a well-known example of a rebrand gone wrong. They spent $100 million on a new logo that shouldn’t have existed in the first place. Why? The original logo for the clothing brand was already iconic. The new logo got backlash and eventually reverted to its 1986 iteration.

Mastercard was another brand that experienced a blunder after changing its logo in 2006. It was due for a brand refresh. However, the logo didn’t meet the public’s expectations. The new logo was used for its corporate division. It wasn’t until 2016 that Mastercard got a much better and more modern logo from Pentagram.

Should Logos Cost Millions?

First, big-name brands can spend exorbitant amounts of money to tap agencies. That’s why logos can cost millions of dollars. But small and medium businesses may opt for budget-friendly choices, such as freelancers or DIY services.

However, agencies provide businesses with a comprehensive branding system. Agencies collaborate with the brand through brainstorming and selecting the best ideas to make it stand out and bring in more success. From there, they collect all the necessary details to organize them into one cohesive brand identity.

Additionally, the steep cost is attributed to the constant changes in choosing the best logo style fit for the brand. Agencies can churn out many logo ideas until they nail the exact logo perfect for the business. Plus, creating and remaking are part of the logo design process. That’s why it can take days or weeks to decide which logo encapsulates the brand’s identity. Plus, they ensure that even the tiniest details will give your logo meaning.

Plus, the agency’s payroll takes the bulk of the costly fee, as you are paying a premium for their time. Even though that’s the case, agencies are one of the go-to companies to get a logo for your brand. They have a bespoke system allowing them to create the logo from start to finish and a solid brand.

How Do Agencies Get it Done?

Although agencies have specialized and expert personnel equipped to fulfill a brand’s needs, sometimes they need extra pairs of hands to accomplish the tedious process of creating a logo.

Agencies can employ a freelancer team dedicated to creating various logo ideas that meet the client’s requirements. But hiring a freelancer team can break the bank, and choose an unlimited graphic design service, like Penji.

Not only are these services affordable, but they also have a faster turnaround than most freelancers. Thus, it’s an attractive option for agencies and businesses alike to subscribe to them. Plus, agencies get the most bang for their buck since unlimited graphic design services allow them to request any design they’ll need to finish their client’s projects.

Final Thoughts

It’s no secret that agencies charge high rates to get a logo from them. However, you can trust in their design process that it gets results. You don’t have to approach an agency yet, especially if you have a small portion of your budget going to your brand. But they’re a top choice to get logos because of the care and time to invest in creating a solid brand.