Yes it’s possible to start a logo design business without being a graphic designer. Think about other businesses whether they are product or service based. For example, If you were to visit a shoe store in the mall you wouldn’t expect the owners to have made the shoes themselves, would you? I can almost guarantee your expectation would be quality shoes and great customer service. The CEO’s of Nike and Footlocker aren’t personally making shoes anytime soon! My point is that you can start a logo design company the same way without personally making shoes, I mean logos… In this article i’ll break down step by step how to start your logo business. I’ll try not to be long-winded, as this is a fairy easy process… Let’s get started!
Step 1. Business name and niche.
There are literally hundreds of logo design companies out there, so you’ll need to pick a name and niche wisely. You will either operate as a sole propietor, or get an LLC through a company like Legal Zoom. Either one will work just fine. If you have zero graphic design experience I recommend selling your logos at the $50 – $100 price point, this is because clients paying $200 or more have an overall higher expectation. You will gradually get to those clients, but start small and work your way up. Dominating the $50 – $100 logo space can yield solid profits, I’ll show you how later.
Step 2. Branding
You are going to need your own logo for your logo design business, of course! If you’re going to be selling logos than your own logo has to be dope! Make sure you don’t skimp on it. You are simply going to go to Fiverr.com and hire a logo designer, don’t spend over $50 on your logo unless you got it like that. Create social media profiles for your new company and post content relevant to your target market. For example you can re-post articles from Entrepreneur Magazine, or a Gary V. vlogs etc. Sign up with sites like Upwork.com and Designhill.com to find potential clients. I recommend getting a 1 to 2 page website as well, however, it isn’t necessary to get started.
Step 3. Hire a Design team:
Now that you have your business name, logo and social media profiles, it’s time to hire talent! Remember when I said start a logo business without being a graphic designer? Here’s how! You are the well branded American Logo Design company, and there are thousands of designers from other countries looking to work for you. There is plenty of talent in places like India, Bangledesh, Pakistan, The Phillipines etc. These are designers that are well educated, and are experts in their niche. You are going to go back to Fiverr.com and search for logo designers, when you find a quality designer at the price-point you’re comfortable with, send that designer a message similar to this. “Hey this is Mike out in Los Angeles, CA, I’m the president of (your company) and I’m looking to hire a dedicated logo designer.
I see that your rate is $30/logo, If I can send you jobs in bulk, can I get a flat rate of $20?” You’ll want to have 3 or 4 go-to designers that you build a long term relationship with. You market your company and handle the customer service, your employees will handle the designs. Ask your employees if it’s ok to use their previous designs for your example work on social media.
- How it works:
So you get a DM on instagram and someone wants to purchase a logo, now what!? You’ll send the customer a short form to fill out (nothing fancy) that has their 1. company name, 2. Slogan, 3. Industry, 4. Color scheme, 5. Example logos. You will then send that info over to your designer/employee to complete. If your designer has a 2 day turnaround then make sure you set the expectation with your customer, this game is all about exceptional customer service! Your designer may send you back 3-5 mock designs to choose from, and you’ll want to screen them first before sending them to your client for feedback. If it looks wack to you, it’ll probably look wack to your customer. Once the customer approves the logo design, it’s time to get paid and send over the files.
Whether you plan on using Paypal, Zelle, Venmo or Cashapp, make sure you get the full payment before sending the source files to the client. The customer just paid you $50 for a logo, and you’re going to send $20 to your designer, meaning you profited $30. The client is happy they got a new logo, your employee is happy to be working for such a great boss, and you make an easy profit. Now let’s say you completed 4 logos a day with a $30 profit margin, that means you’ve made $120 a day, or $840 a week. If you were to grind it out for a month you’d take home $3,360!
That was a very begginer example, but once you get a good system down you can go for bigger clients. Let’s say a client needs a professional logo and their budget is $300… you don’t want to be greedy and hire a $20 designer, because that client has an expectation and will likely be dissatisfied. If a client has a $300 budget then you can now afford to hire better talent. Instead of giving the job to the $20 designer, hire a designer that costs you between $100 – $150. You will still take home $150 to $200 profit, and your client will be satisfied. You’ll eventually be able to pinpoint which jobs are suitable for which of your employees. The more professional you present your company, the better talent you’ll attract.
Marketing your company:
I won’t make this long and drawn out, but I will be thorough without overcomplicating. If you don’t have a large social following already, you will likely need to run Paid Ads.
I can’t count the times I’ve seen this logo designer’s Ad on Facebook, hell I’ve even reached out a few times. Running Facebook Ads is dope because you can reach an insane amount of people, even if you’re spending just $2.50 a day. Over time that reach ads up and creates a consistent flow of traffic, but it’s up to you to crank out quality logos. Once you’ve mastered FB and IG Ads, you can then move to Google Ads, Youtube etc. Keep in mind you will get tons of comments and engagement from these Ads, so if you’re doing bad business everyone’s gonna know! Here are a few guides to help you learn more about ads, this is a key part of your business.
To sum things up you’re going to think of your company name. Get a high quality logo for your company. Create social media profiles for your company (and a website). Go to Fiverr.com to hire your logo design team (at least 3 go-to designers). Run Facebook and Instagram ads to drive traffic to your business. If you sell a logo for $50, pay your designer $20, make $30 profit. Sell a logo for $150, pay your more skilled designer $60, you profit $90. Once the client purchases a logo package from you, have them fill out a short order form (business name, slogan, industry, color scheme, examples) and then give that form to your designer. Screen the initial design mockups that your designer provides, then send a few options to the client for feedback. Once the client approves you may collect payment in full and then send over the logo files. Make sure to include the Vector files and all source files.
You are building a business so always think for the long term, and take customer service seriously. Your designers are the workers that are sowing shoes, but you are ultimately responsible for the design work. Make sure you hire good designers and be fair with their pay. Go out there and make some money!