As an SME owner, one of your main concerns will likely be growing your business and attracting new leads. There are many tactics that can help with this, but arguably the most important is branding. A good logo can make you look more professional, give your business character and help you be memorable to the people that come across you.
Of course, nothing good comes for free in the world of business. To get a high-quality, well-designed logo you will need to pay for it. However, the cost doesn't have to be prohibitive. It all depends on what you're looking for.
At the lower end of the scale, a logo could cost as little as $5. Websites such as Fiverr are marketplaces for freelancers looking to build up their portfolios, and many of them are able to create a simple design for you at an extremely low cost. However, this might be best used as a starting point rather than the source of your final design.
The creative process for sites like these is very quick, without much input from you, so unless you are looking for something very basic they're unlikely to be your best option. DesignMantic lists a six-step process for basic logo design, and with these sites you'll probably only get two or three.
With low cost websites, you must also be wary of the quality that you’ll be getting. You can’t expect to pay minimal fees for the highest quality design, so assess suitability before engaging in any form of payment.
What you should be paying
So how much should you be spending? Deluxe recommends no less than $200 for a simple logo, but advises that you might need to go up to $500 for any more complex designs. This is a good ballpark figure to have in mind to make sure you're not being overcharged, as well as indicating if you're going to get poor work from a cheap vendor.
Andrew Medal, founder of digital agency Agent Beta, agrees with this price tag. In an article for Entrepreneur he highlighted the dangers of spiraling costs when working with third-party designers, adding:
Paying any more than this range for a logo is simply a waste of budget.
By the same token, however, paying any less could leave you with an underwhelming logo, and this is arguably worse than overpaying. For many people, your logo is the face of your company and the first thing they will interact with, so it's crucial you get it right, even if it means spending a hundred dollars more than you wanted to.