The real reason some agencies charge $25,000 for a logo

Pepsi, BBC, Accenture, and Symantec are only a few of the most expensive logos recognized worldwide. These logos cost at least a million dollars! Big or small companies consult professionals to create an impactful logo. And although the result is timeless and will represent a memorable brand for years, some small businesses or startups don’t have this much budget for a logo. Agencies alone charge at least $25,000 for a logo. But is this a reasonable asking rate? Why do agencies charge this much? Here’s the lowdown on how startups can be on the same level playing field with popular brands when it comes to logo designs.

Why do agencies charge thousands for a logo?

Logos are expensive because it takes hundreds of ideas and concepts to arrive at a final logo outcome. Professional logo designers and a team of branding experts sketch logo concepts, try them out on various mediums, and see what fits the brand best. 

Professionally made logos last a lifetime and are one reason why famous brands thrive. They exude quality, which tells a brand’s target audience that they invest in everything with quality in mind. It implies that the company prioritizes quality service and leaves a lasting impression on customers. 

Agencies charge tens of thousands of dollars for a logo because they have a whole team working on one logo design project. A project manager handles every aspect of the design process in every logo design. They help in uncovering logo design ideas that contribute to better outcomes. 

However, most agencies work with white-label services for logo designs to avoid monthly upkeep and benefits for in-house employees.  

What is a white-label design service?

A white-label design service is a third-party design service that works with agencies and professionals. These companies don’t work directly with clients. Instead, white-label services create the logo and provide copyright for the designs. The agency acts as the middleman between the client and white-label service.

Full-service agencies that offer a set of branding and marketing services find this setup easier. These full-service agencies handle branding creation, brand identity and image, and advertising. This setup is easier because agencies don’t have to hire in-house graphic designers. This kind of service is a pay-as-you-go service, meaning an agency only pays when they subscribe to its plans. 

Working with white-label services also allows agencies to work with many clients simultaneously. Agencies can contact or subscribe to white-label services if their in-house team can no longer handle the influx of clients. The advantage of working with white-label services is they can unsubscribe during the slow season.

Why do agencies work with white-label design services?

White-label design companies like Penji are subscription-based graphic design services. These graphic design business models offer various plans with different pricing tiers. The higher the plan, the more service inclusions subscribers get. 

Clients first choose a plan and sign up. They send the design brief to a team of experts and wait for the first draft. Agencies work with either freelancers or subscription-based design services for logo designs. 

While freelancers’ rates are relatively more affordable, agencies need a more reliable design assistant. Freelancers work with multiple clients and prefer high-paying ones. When agencies hire freelance logo designers, the freelancers’ loyalty lasts until the design is completed. After which, they move on to the next client. 

On the other hand, white-label design services ensure 100 percent total commitment while agencies are subscribed to the service. 

For instance, working with Penji means accessing a bespoke design and messaging platform that makes the process efficient. Moreover, Penji assigns an account manager and a team of designers for every project. An account manager ensures that every requested design is taken care of. 

How does Penji’s design process work? 

• Clients/agencies submit a design brief with complete instructions on what they want for their logo
• Penji’s team conducts research, market and competitor analysis, and sketches logo ideas
• The team of designers chooses one suitable design and sends the first draft after one to two days
• The clients can ask for unlimited revisions or download the design if they’re happy

What does a cheap logo imply? 

A cheap logo may suggest that the business or individual did not invest much time, effort, or resources into creating a professional image. It can give the impression that they may not take their brand seriously or value the importance of a solid visual identity.

Additionally, a cheap logo often lacks originality and creativity. It may appear generic, uninspired, or even amateurish. This can convey a negative message about the business’s ability to stand out from competitors or capture the attention of potential customers.

Finally, a cheap logo may suggest that the business is operating on a tight budget or is unwilling to invest in professional branding. This can raise doubts about the business’s financial stability or commitment to providing quality products or services.

Why finding an expert graphic designer matters

Finding the right graphic designer for your business logo is the key to success. It’s important to note that price doesn’t always determine a logo’s quality or effectiveness. Ultimately, the quality of a logo depends on the skills and creativity of the designer, the goals of the business, and how well the logo aligns with the brand’s values and target audience. More often than not, finding professional graphic designers will help brands embody their personalities and image in a logo. 

For instance, here are some of the most expensive logos:

• Symantec’s logo costs $1.28 billion
• British Petroleum (BP) logo costs $210 million
• Pepsi’s redesigned logo costs $1 million

However, Nike’s logo costs $35, created by Carolyn Davidson in 1971. Nike is proof that not all famous logos come with exorbitant fees.

And this is why most agencies prefer to work with Penji over freelance graphic designers because white-label services are affordable and reliable.

Penji’s professional graphic designers belong in the top two percent of the industry. Unlike freelancers who join online job marketplaces with lenient onboarding systems, they are vetted creatives. 

The bottomline

Working with agencies for your company logo is worth the investment if you’re an established brand undergoing redesign or rebranding. Shelling out a hefty budget might be manageable for you. However, agencies might be too expensive if you’re a small business or startup. Going for freelance graphic designers or subscription-based design services like Penji is recommended.