The $99 Logo: You are not evil. You're smart.

So you’ve started a small business. Yay! Now that you’re in the (shh!) secret club, these things will soon arrive at your doorstep:

  1. A stack of books by Seth Godin
  2. A special pass allowing you free business-class upgrades on every airline
  3. A sackful of money to develop a brand that will put your business on a level with Apple.

If you’re like me, you spent the sackful of money on Apple products. So it’s back to square one on that pesky branding thing.

When the sackful of money doesn’t arrive right away

If you’re like most new business owners (or, ahem… me), you do the fun stuff first and save the tax stuff for later. So, the fun stuff: a web site, twitter account, facebook fan page, logo, business cards, and custom pens to give away. Right. As long as we’re not pretending otherwise here.

Since you don’t have a sackful of money on day one, creating your brand or even getting a logo designed can be daunting. It’s a big expense. Working with a professional designer or branding pro is well worth the investment and if you can swing it, that’s the route you should go.

But let’s pretend that me saying that’s what you should do doesn’t mean you can suddenly afford it. There’s still that missing sack.

I’m going to tell you about something that seems counter to everything I’ve ever said on this blog about getting cheap design. It’s called 99 Designs.

99 Designs is a web site where you can pick out an image from a vast catalog and get a logo created, lickety-split, for the obvious price of $99. It’s almost painless and certainly fast. It’s at least a tenth of the price of working with a designer.

In the past I’ve warned people (in strongly-worded rants) to stay far away from these kinds of services. So why have I changed my stance? Simple, really.

I started to think about this logo design process from the perspective of a shiny new (micro) business owner. Wow, imagine that.

From what I see, it’s incredibly tough. Aside from those free Seth Godin books at your door, there’s no information that just comes to you about how to do all this stuff. So if you can’t afford a designer, the only choice seems to be to do nothing (or incur the wrath of elitist designers like me).

Okay, so there’s not doing nothing. There’s doing it yourself. I’ve recommended in the past (and I still think this is a good idea) that if you can’t afford a logo, just type your business name in a common, legible font and sit tight until you build some capital.

But $99.00 to get something decent that will make your business cards look a step above something you created with your printer’s design software? Man, that’s tempting. And could be a really great deal for you.

So get a $99 logo but consider this first

Here’s the thing about these off-the-rack logos. They’re not tailored for you and the people you serve. You’re not creating a brand. You’re decorating. Is that okay with you? Maybe you don’t need to think Branding with your tiny felt monster biz on etsy. It’s way more important to just get moving and create your cool felt dudes than get mired in branding strategies.

Listen, if you have a landscaping business you can go pick out a tree image and let the $99 Designs people pair it with a nice font and lay it out. Boom, landscaping logo. You’re not going to do any harm. You are not evil. You’re smart. You would be stupid not to take advantage of this deal in your early days.

However, when you need to get across who you are to your right people instead of just any ol’ shmoe looking for the cheapest landscaper, you’ll need to work with a human being one-on-one. That needs to be crafted. It shouldn’t be a cookie-cutter process because hopefully you’re not creating a cookie-cutter business.

For every cheap logo you buy, somewhere a designer falls down dead

Something designers need to understand is that no matter how we rage against the machine of monolithic stock image houses and online logo services, they’re not going to turn tail and run. It seems there’s a need. Hmmm. Need.

This means that designers have to become good at more than just production work. You can’t build a design business around cranking out $99 logos. You’re never going to compete on cheap production and why would you want to?

Stop fretting about The Man and get smart. If you want to be thought of as something more than a production monkey, you can. Create something beautiful and new and unique and crazy and helpful. Make art, not widgets.

I repeat to small biz people: you are not evil.

The final word on this

I actually have no final words on this. I imagine I’ll be changing and adapting the way I look at these kinds of things forever. As a designer I can take a strong stance against working on spec, charging per project instead of hourly, and this discount logo issue. When I believe in something I stand by it. But closing my mind to new perspectives and clients’ changing needs only feeds my ego, not the people who need my special kind of help and guidance.

I welcome any discussion, from designers and small biz owners who have dealt with these issues.

16 Responses to The $99 Logo: You are not evil. You're smart.
  1. Naomi Niles
    February 25, 2010 | 6:02 pm

    Totally in agreement with you here. Us designers worrying and complaining about this stuff isn't going to change a thing. If people can't afford it right now, they can't afford it right now. Maybe one day they will though and then they'll get it done right. It's their business and their choice.

    One the other hand, this is also a good reminder that us designers to up our game in general. We can't just make pretty stuff and then hold out our hands to get paid. Why would a client pay a lot of money for a cookie cutter solution when they can get the same for cheap in a place like these?

  2. Naomi Niles
    February 25, 2010 | 6:02 pm

    Totally in agreement with you here. Us designers worrying and complaining about this stuff isn't going to change a thing. If people can't afford it right now, they can't afford it right now. Maybe one day they will though and then they'll get it done right. It's their business and their choice.

    One the other hand, this is also a good reminder that us designers to up our game in general. We can't just make pretty stuff and then hold out our hands to get paid. Why would a client pay a lot of money for a cookie cutter solution when they can get the same for cheap in a place like these?

  3. George Coghill
    February 25, 2010 | 6:14 pm

    Hmmm. My problem with these sorts of sites isn't in the bargain for the end user, but in the devaulation of the creative side of things.

    It costs $39 just to post, then you need to pay for the final design. The problem here is that the site asks designers to work for free to create these designs. Obviously it's up to the person to decide if they are going to participate, and obviously people do choose to work for free.

    My problem comes with the second step: when the client decides they want to go for a custom logo. They are going to expect free designs to choose from, and expect not to pay more than a hundred bucks or so.

    I'm curious if you yourself participate in these design contests. My guess is that you don't.

    Sure, the customer gets a really cheap logo. but at the expense of designers who need to work for free to get a chance to get paid. Setting this kind of precedent and expectation in a customer's mind seems counterproductive to what you & I do for a living.

    I'll trod out the old restaurant analogy: you don't get to eat everywhere you're curious about and only pay for the meal you liked best.

    I'm much more partial to an auction-style cheap logo site, where you set the price you're willing to pay and let designers bid on the job. That way the client gets their price, and no designer is doing free work.

    It's the expectation (and requirement) that designers have to work for free that I take issue with in particular.

  4. George Coghill
    February 25, 2010 | 6:14 pm

    Hmmm. My problem with these sorts of sites isn't in the bargain for the end user, but in the devaulation of the creative side of things.

    It costs $39 just to post, then you need to pay for the final design. The problem here is that the site asks designers to work for free to create these designs. Obviously it's up to the person to decide if they are going to participate, and obviously people do choose to work for free.

    My problem comes with the second step: when the client decides they want to go for a custom logo. They are going to expect free designs to choose from, and expect not to pay more than a hundred bucks or so.

    I'm curious if you yourself participate in these design contests. My guess is that you don't.

    Sure, the customer gets a really cheap logo. But at the expense of designers who need to work for free for a chance to get paid. Setting this kind of precedent and expectation in a customer's mind seems counterproductive to what you & I do for a living.

    I'll trod out the old restaurant analogy: you don't get to eat everywhere you're curious about and only pay for the meal you liked best.

    I'm much more partial to an auction-style cheap logo site, where you set the price you're willing to pay and let designers bid on the job. That way the client gets their price, and no designer is doing free work.

    It's the expectation (and requirement) that designers have to work for free that I take issue with in particular.

    • Sparky Firepants
      February 26, 2010 | 12:35 pm

      @George You're right, I don't participate in those contests. It's not a smart way to run a sustainable design business. At best, it's beer money for a student.

      But who's forcing these designers to participate and work for free? The fact that they are (in such large numbers) is partially what's driving the off-the-rack logo industry. If individual artists turned away from these sites, they would fold. Who would create the art?

      But they are creating the art, so the reality is that there's a market for both designers and people who need the logos.

      People need to take responsibility for their actions and their careers.

      I used to worry that this practice devalued the art. Now I see that my clients fall into two categories:

      1. I want what you do but I can't afford it. Now what?
      2. I want what you do and I can afford it. Let's go!

      People are smart. They recognize the difference between clip-art and custom design. Thankfully I've adapted my business to help both categories of client (not by lowering my rates, either).

      Here's a fun analogy.

      Say you're hungry. You've got $12 in your bank account. You would love to eat at Poshy-posh Bistro, but $12 will only get you half of an appetizer.

      Then there's McDonald's. $12 will get you two full meals. Not as satisfying is just about every aspect, but there it is.

      Your two choices are: 1. Eat. 2. Don't eat.

      If you decide to survive another day, you'll eat. Does that devalue Poshy-posh Bistro?

      Billions of cheap hamburgers have been served, yet people still eat at fancy restaurants.

      The same thing is happening with brick and mortar book stores. Right now they're losing to online retailers. We hate seeing this, because we like to think that the mom & pop book shop should win out over the corporate behemoth.

      So I ask: what can mom & pop do in their little book shop that Amazon and B & N can't do? Plenty, and it's all about dealing with people one-on-one, being flexible, making a connection. Two quick ideas:

      1. Offer to host space for discussion groups and book clubs. Serve free coffee and donuts from the local donut dude.

      2. Create a shelf where each week a customer “owns” it. They select their favorite books to display on the shelf. That customer receives a percentage of sales for those books that sell.

      This is exactly how I think about this bargain basement logo practice. We can talk about how it hurts the special custom work we do, but that only gets us agreeing with each other.

      The trick is changing what we offer so that we're not competing with $99 Designs on any level. I think it's going to be different for every artist.

      • George Coghill
        February 26, 2010 | 12:56 pm

        Good points.

        I think my issue is that it sends out a message that people are willing to work for free in this industry (which they obviously are).

        In my experience, people who shop by price are not the clients you want anyways.

        Regarding the posh bistro, another good analogy. But McDonald's still charges for all their hamburgers. And neither place will let you pay only if you like the food you ate.

        Like I said, I am not against options for clients to get a cheap logo if that's what they want, but more against the idea that so-called designers are expected to work for free.

        Personally, I strive for providing a kick-butt character/logo in a specific style that's not available anywhere else. I don't really concern myself with contest design sites since like I said, those clients weren't mine from the get-go.

        Low-price auction-style alternatives like Elance and Guru.com? All for it, and I even send clients with limited budgets to those places (some even come back when the art/experience wasn't up to snuff).

        Those types of places are fair for both sides.

        Design contests sites take advantage of the creators, and I don't like that. But as you mentioned, these designers are making a choice. But as you also said, it's no way to run a successful business.

        Those people are either dabblers or will be out of business in a year.

        • M. Borghese
          February 26, 2010 | 1:38 pm

          If I can add my two cents to the whole “contests take advantage of artists/designers” debate:

          Personally, I think participating in a contest is an artist's choice. It comes down to their time/talent/portfolio and their interest level. If you're experienced and you can command a certain price, then that's great. If you're new (or if you're adventurous) then sometimes you need to take risks to build your portfolio (and your bank account). Either way, I support the artist and the decision they make.

          In my case, I opened a deli in Miami, Florida this October. We needed a logo, and we fell in the “I want what you do but I can't afford it. Now what?” category. So we posted a free ad on Craigslist (thank you Craigslist!) asking for submissions. We received several hateful e-mails as well as several logo submissions – including one we fell in love with.

          Our offer, instead of a cash payment, was that the lucky artist could eat free once a week at our restaurant for a year. The winning artist was in fact a pair of artists, and we gladly offered them both free lunch.

          When looking for a logo, we came across several low-cost solutions, many of which seemed like good ideas. However, our main issue was that we wanted the ideas of several people. Creativity is like lightening – even if one firm promised us 50 submissions, it would still come from the minds of one or two people. Instead, we wanted a broad range of styles, concepts and themes. We wanted different people to offer their artistic opinions, not just have one or two people churn out several bland logos.

          Using the contest, we received submissions that involved photos, drawings, and text spread across several different styles. We found one we objectively liked, and the rest is history.

          • George Coghill
            March 1, 2010 | 11:07 pm

            My analogy works well here since you own a restaurant: would you offer to let people eat at your restaurant for free and only have them pay if they liked the food?

            No doubt this is a good deal for the client. It's the designers who end up working for free that are the casualties of this approach.

  5. Sparky Firepants
    February 26, 2010 | 12:35 pm

    @George You're right, I don't participate in those contests. It's not a smart way to run a sustainable design business. At best, it's beer money for a student.

    But who's forcing these designers to participate and work for free? The fact that they are (in such large numbers) is partially what's driving the off-the-rack logo industry. If individual artists turned away from these sites, they would fold. Who would create the art?

    But they are creating the art, so the reality is that there's a market for both designers and people who need the logos.

    People need to take responsibility for their actions and their careers.

    I used to worry that this practice devalued the art. Now I see that my clients fall into two categories:

    1. I want what you do but I can't afford it. Now what?
    2. I want what you do and I can afford it. Let's go!

    People are smart. They recognize the difference between clip-art and custom design. Thankfully I've adapted my business to help both categories of client (not by lowering my rates, either).

    Here's a fun analogy.

    Say you're hungry. You've got $12 in your bank account. You would love to eat at Poshy-posh Bistro, but $12 will only get you half of an appetizer.

    Then there's McDonald's. $12 will get you two full meals. Not as satisfying is just about every aspect, but there it is.

    Your two choices are: 1. Eat. 2. Don't eat.

    If you decide to survive another day, you'll eat. Does that devalue Poshy-posh Bistro?

    Billions of cheap hamburgers have been served, yet people still eat at fancy restaurants.

    The same thing is happening with brick and mortar book stores. Right now they're losing to online retailers. We hate seeing this, because we like to think that the mom & pop book shop should win out over the corporate behemoth.

    So I ask: what can mom & pop do in their little book shop that Amazon and B & N can't do? Plenty, and it's all about dealing with people one-on-one, being flexible, making a connection. Two quick ideas:

    1. Offer to host space for discussion groups and book clubs. Serve free coffee and donuts from the local donut dude.

    2. Create a shelf where each week a customer “owns” it. They select their favorite books to display on the shelf. That customer receives a percentage of sales for those books that sell.

    This is exactly how I think about this bargain basement logo practice. We can talk about how it hurts the special custom work we do, but that only gets us agreeing with each other.

    The trick is changing what we offer so that we're not competing with $99 Designs on any level. I think it's going to be different for every artist.

  6. George Coghill
    February 26, 2010 | 12:56 pm

    Good points.

    I think my issue is that it sends out a message that people are willing to work for free in this industry (which they obviously are).

    In my experience, people who shop by price are not the clients you want anyways.

    Regarding the posh bistro, another good analogy. But McDonald's still charges for all their hamburgers. And neither place will let you pay only if you like the food you ate.

    Like I said, I am not against options for clients to get a cheap logo if that's what they want, but more against the idea that so-called designers are expected to work for free.

    Personally, I strive for providing a kick-butt character/logo in a specific style that's not available anywhere else. I don't really concern myself with contest design sites since like I said, those clients weren't mine from the get-go.

    Low-price auction-style alternatives like Elance and Guru.com? All for it, and I even send clients with limited budgets to those places (some even come back when the art/experience wasn't up to snuff).

    Those types of places are fair for both sides.

    Design contests sites take advantage of the creators, and I don't like that. But as you mentioned, these designers are making a choice. But as you also said, it's no way to run a successful business.

    Those people are either dabblers or will be out of business in a year.

  7. M. Borghese
    February 26, 2010 | 1:38 pm

    If I can add my two cents to the whole “contests take advantage of artists/designers” debate:

    Personally, I think participating in a contest is an artist's choice. It comes down to their time/talent/portfolio and their interest level. If you're experienced and you can command a certain price, then that's great. If you're new (or if you're adventurous) then sometimes you need to take risks to build your portfolio (and your bank account). Either way, I support the artist and the decision they make.

    In my case, I opened a deli in Miami, Florida this October. We needed a logo, and we fell in the “I want what you do but I can't afford it. Now what?” category. So we posted a free ad on Craigslist (thank you Craigslist!) asking for submissions. We received several hateful e-mails as well as several logo submissions – including one we fell in love with.

    Our offer, instead of a cash payment, was that the lucky artist could eat free once a week at our restaurant for a year. The winning artist was in fact a pair of artists, and we gladly offered them both free lunch.

    When looking for a logo, we came across several low-cost solutions, many of which seemed like good ideas. However, our main issue was that we wanted the ideas of several people. Creativity is like lightening – even if one firm promised us 50 submissions, it would still come from the minds of one or two people. Instead, we wanted a broad range of styles, concepts and themes. We wanted different people to offer their artistic opinions, not just have one or two people churn out several bland logos.

    Using the contest, we received submissions that involved photos, drawings, and text spread across several different styles. We found one we objectively liked, and the rest is history.

  8. Mike Korner
    February 26, 2010 | 2:48 pm

    I commend both you and Naomi for taking the high and proper road on this. In general, people who appreciate quality will pay for as much as they can afford (and sometimes even a little bit more).

    I’m working on the content plan for my web site right now and when I get to the art part, nearly any logo will be better than what I can draw with my crayons. If, for budget or timing reasons I end up going with less than sparkyfirepants-quality art, I’ll have to rely on the quality of my content.

    If it turns out that my skill as a content provider pleases the nice people of the world such that they spend lots of their hard-earned money with me, I'll be back for “awesomization”. I'll buy the BMW convertible, too :)

    Your bookstore analogy is a great one. It reminds me of businesses that gripe about Walmart kicking their butts. Hey, quit competing on price and give me value! It also reminds me of a local camera store that has “my” dream camera priced $400 more than a reputable online camera store. As much as I want to buy local, we are talking $400. The local store isn't adding much value.

    By the way, I think the real answer is sparkyfirepants t-shirts!

  9. Mike Korner
    February 26, 2010 | 2:48 pm

    I commend both you and Naomi for taking the high and proper road on this. In general, people who appreciate quality will pay for as much as they can afford (and sometimes even a little bit more).

    I’m working on the content plan for my web site right now and when I get to the art part, nearly any logo will be better than what I can draw with my crayons. If, for budget or timing reasons I end up going with less than sparkyfirepants-quality art, I’ll have to rely on the quality of my content.

    If it turns out that my skill as a content provider pleases the nice people of the world such that they spend lots of their hard-earned money with me, I'll be back for “awesomization”. I'll buy the BMW convertible, too :)

    Your bookstore analogy is a great one. It reminds me of businesses that gripe about Walmart kicking their butts. Hey, quit competing on price and give me value! It also reminds me of a local camera store that has “my” dream camera priced $400 more than a reputable online camera store. As much as I want to buy local, we are talking $400. The local store isn't adding much value.

    By the way, I think the real answer is sparkyfirepants t-shirts!

  10. George Coghill
    March 1, 2010 | 11:07 pm

    My analogy works well here since you own a restaurant: would you offer to let people eat at your restaurant for free and only have them pay if they liked the food?

    No doubt this is a good deal for the client. It's the designers who end up working for free that are the casualties of this approach.

  11. George Coghill
    March 1, 2010 | 11:08 pm

    Here's an interesting link on the “design contest” approach from an attorney: http://www.myshingle.com/2010/02/articles/marke…

  12. George Coghill
    March 1, 2010 | 11:08 pm

    Here's an interesting link on the “design contest” approach from an attorney: http://www.myshingle.com/2010/02/articles/marke…

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