I read somewhere that logo design is a mixture of science and art. Throw in some blood, sweat and tears and I think it’s fair to say it accurately describes logo design pricing too.

Sorting out how to charge for logo design is one of the biggest issues that threatens the sanity of every freelance designer out there.  Where does one start?

If you are just beginning your design career, one of the first things to decide is what your minimum flat rate for a logo will be. Charge too little and no one takes you seriously. Charge too much and you have priced yourself out of the game. A graphic designer should never charge less than a flat rate of $300 for a logo.

With that said, you will be contacted many times by not-for-profit businesses and organizations that won’t be able to afford your minimum rate. I would encourage you to pick one or two of them that you are passionate about and consider doing their work pro bono, rather than lowering your minimum rate. Not only will you be contributing to something worthwhile, but you will be adding content to your design portfolio. Many not-for-profits are very appreciative of the work you do for them and usually find free, unique marketing opportunities for you, as a way to repay.

After determining your minimum rate, there are several factors to consider when deciding how much more to charge clients.

Factor #1: Level of Expertise

First and foremost, consider your level of expertise. What is your level of education, knowledge, experience and skill? What is the quality of your design work? How long have you worked as a designer?

Factor #2: Client Type

The next equally important consideration is who is your client. Who is the client and how will they be using the logo? A logo for a mom and pop business will be used less and therefore have less value than a logo for a huge corporation, who places their logo everywhere.

In the beginning of my design career, it was the mom and pop shops that contacted me for logo design. They were the clients that gave me the opportunity to expand my logo portfolio.

As my portfolio expanded, so did my client base. I was being approached by larger sized businesses to design logos. My rates expanded with the size of the client. Logos designed for larger businesses have much more value and are used in so many more ways. Average freelance graphic design rates for logos start at $300 and go up to $1200, and in some cases, much more.

Factor #3: Deadline

Be sure to ask and consider how soon they need the logo completed. Time constraints up the value of a logo, or any design for that matter.

Factor #4: Economic Market

Where is the client located? My business is located in Central Illinois and my rates are based on the economic market here. When I started getting clients from the Chicago area, I learned I could double my rates, and still be affordable in that market.

Factor #5: Transfer of Copyright

It’s only right that you grant sole ownership of the logo to any client that has paid for it.

When you create a logo, you are selling a design that you created, that you can never use again.

For all things graphic design, sans logos, clients usually only want to pay for the right to use the artwork.

They are not usually purchasing the copyrights for the work you create. When you perform graphic art services for a client, your client is paying for rights to use your work under your copyright.

Factor #6: Concepts & Revisions

Decide how many concepts and revisions you are going to offer with the logo design. Make sure this is communicated to your client, so they understand what is covered in your rate.

Clients love flat rates, as it assures them that the charges won’t be over the top. No surprises.

When it comes to pricing logo design, there is no one size fits all. I would encourage anyone trying to decide how to charge for a logo to use a flat, value-based rate, rather than charging by the hour. Be able to articulate to your clients what makes your logo designs value-based. Explain to them your design process. It’s invaluable to understand and be able to communicate both the science and the art of value-based pricing.