What is a logo's true value?

February 23, 2010 | Posted by Carolyn Pikoulas
A logo is a visual expression of your company. It helps build brand identity and meet your business goals. But the question every company must ask itself: "How much is a well-designed logo really worth to my business?" To answer this, you must understand your logic on whether you feel that branding is merely an expense or an investment in your company's future.

If you feel that a logo is simply an expense like envelopes or toner, then having a professionally-designed logo will never be viewed as being worth much of anything. Or if you believe a logo is just a pretty icon that will ultimately be slapped on some business cards and website, then shopping around for a logo based on price may better suit your needs. However, if you view your logo as an investment that creates an overall image of your company, onto which you, your employees and customers can unite, then your logo will be worth much more. It'll then be worthy of the extra thought, time, and expense it takes to create it the right way.

It's difficult to put an actual dollar figure on the value of a logo. A good logo goes a long way in establishing your business identity and creating brand recognition. It should be unique and eye-catching. A logo is meant to inspire recognition, obtain the trust of clients, and help you earn a reputable business image, all while possessing an enduring appeal.

So, how do you know if the logo is good or not?
It's true -- beauty is in the eye of the beholder, and whether a logo looks good or bad is a matter of opinion (although we can argue that ours is an "educated" opinion, it's an opinion nonetheless). A good logo consists of 2 things: concept (the idea/goal behind the logo) and execution (how the logo looks visually). Without both of these, you won't have a great logo.

While you may have an idea of what you want your logo to look like, there are some issues that you may not have anticipated:

1. How will your logo reproduce on a variety of media? Will your new logo reproduce well as a large sign and as a postage-stamp?

2. How do you work with designers? Are you a passive client leaving your trust in their capabilities, or do you immerse yourself deeply in the process, giving direction and suggestions throughout?

Here are some things that should be avoided:

• Design by Committee
  One of the most difficult and frustrating projects for both the designer and client is designing a logo that will agree with a large group of people who are responsible for selecting, modifying and approving the logo. What usually happens is that the loudest person (a.k.a. the person with the biggest ego) is the one who forces their opinion onto everyone else in the group. They aren't necessarily the ones with the best sense of design. It's better to select one leader for the committee who has the group's ultimate goals in mind.
• The Metaphor
  While it's nice for a logo to have meaning (such as: this shape says that we're high-tech), it may not translate well to the viewer. The most memorable logos are also the most simple. A logo has very little time to grab someone's attention, so it needs to instantly tell the viewer what the company is all about. The simpler, the better.
• Micro-managing
  As designers, we are trained in many aspects of design, marketing and technology. By the time we present preliminary designs to our clients, we have researched and attempted every variation of that particular design. Tweaking a logo to death will not improve the design. This type of direction is brought on by client's desire to get their "money's worth." Remember, designers will utilize their skills and knowledge of design to create the right image that represents your company and translates well for your target audience.
• Copying
  Although it can be helpful for our designers to view types of logos that you like, it's best to keep that influence to a minimum. The logo that you like may be a great logo for that particular company. But, it doesn't mean it's right for your company.

A good logo can never replace great customer service, top-quality products or time-tested business models. What it can do is give your business a personality in which your customers and employees can easily identify. A good logo ultimately supports a company's potential.