Branding pricing: what to expect for your budget

Is branding really worth the investment, or is it just another business buzzword? Let’s get straight to the point - branding isn’t just an extra; it is what sets your business apart. Wondering if you need branding? Here is the truth: if you want to be memorable, it is not if you need it, but when you will start. Want to know why?

Branding is often misunderstood and limited to just the visual elements like logos and packaging. However, it holds a much broader strategic importance. Your brand is your business DNA. Just as DNA determines the unique characteristics of an organism, your brand shapes the identity of your business. A strong brand is a powerful asset that can differentiate you from competitors, attract loyal customers, and drive long-term success.

Your brand is more than just a logo or a slogan; it is the sum total of your company's values, culture, and customer experiences. It is the core essence that defines who you are, what you stand for, and how you want to be perceived by the world. These are not pure words – the majority of customers research the company’s reputation before making a purchase.

Branding is an element of a company’s marketing strategy. It has always been considered that 10% of profit should be spent on marketing. But how much to spend on branding? Businesses with annual revenue of less than $500,000 have a monthly branding budget of $100-$500. However, branding services pricing can vary significantly depending on the scope of the project, the scale of your business, and the provider you choose.

Small business branding cost for a local startup may be different from costs needed for a large-scale rebranding for a multinational corporation. Similarly, the fees charged by a freelance designer will likely differ from those of a full-service branding agency. Let’s delve deeper into factors and key elements that influence branding costs. The insights will help you understand how to plan your branding budget.

When getting into branding, it's important to know the key factors that affect its cost.

• Scope of services. A full-cycle branding with market research and marketing materials will cost much more than simple logo creation.

• Scale of business. Local businesses spend less compared to national or global companies.

• Provider expertise. Freelancers charge less than high-level agencies.

• Target audience. Different demographics may require tailored approaches​, which involve additional costs.

The cost of branding can vary significantly depending on whether you are creating a brand from scratch or refreshing an existing one. In any case, there are several critical elements you must craft or redesign when you are considering a new branding. Let’s explore the potential cost of each of them.

1. Brand strategy and research

Deep market research will help you figure out what makes your brand unique, who is your audience and competitors. These insights simplify brand strategy development – define your brand's purpose and how you want to be perceived – and build your brand personality.

What is the cost of market research for branding?

• Freelancers charge $1,000 to $10,000 because they work independently and may offer basic strategy and insights. However, they do not have resources an agency has.
• Agencies charge $10,000 to $50,000 or more because they offer more in-depth research, market analysis, and a full team of experts..

2. Logo design

Designing a logo is a creative process. But it should be relevant to your brand's identity and messaging, stand the test of time and avoid looking dated. Besides, it should be adaptable to various applications, such as print and digital media. Logo design pricing can vary widely.

What might it cost?

• Freelancers charge between $100 and $5,000. The lower end is often for beginners or less experienced designers, who might not provide extensive market research or multiple design options.
• Agencies will ask for $2,500 to $100,000. Smaller studios might charge $2,500 to $10,000 for a few professional design options. In contrast, top-tier agencies can cost $100,000 or more.

Just imagine – BP (British Petroleum) spent $ 5.72 million to redesign its logo and $211 million!!! to refresh its brand positioning. The new logo shows the company’s focus on eco-friendliness. It features green and yellow colors, which symbolize nature, and leaf-like shapes to emphasize its environmental message. Even if the design faced much criticism, BP is rated one of the top ten green brands.

3. Brand identity design

This covers the whole visual look of your brand - colors, fonts, and the overall style that makes you recognizable. It encompasses various elements that work together to communicate your brand's personality, values, and message.

What is brand identity cost?

• Freelancers will charge between $2,500 and $10,000. They usually offer personalized service, which can be more affordable because they work independently. However, they are not often experienced enough.
• Agencies tend to be more expensive, with costs ranging from $10,000 to over $50,000. This price includes a full team of experts who provide a more comprehensive approach, including research, strategy, and execution.

4. Brand messaging

The right brand message (like your tagline or mission) ensures you communicate what your brand stands for. It means crafting a strong story that connects with your audience and clearly conveys your unique selling point (USP). It helps customers understand why they should choose you.

What might it cost?

• A freelancer might charge between $1,000 and $5,000 for developing brand messaging, including creating taglines, mission statements, and key messages.
• Agencies typically charge more - from $2,000 to over $15,000. This higher price is due to the comprehensive approach - they provide a more coordinated effort and can deliver a polished final product.

5. Website and digital branding

A good website is crucial for your digital presence. Your website serves as the digital storefront of your business, and it should reflect your brand identity and provide a positive user experience. Additionally, a strong presence on social media platforms will connect with your audience and promote your brand.

What might it cost?

• Freelancers might charge anywhere from $500 to $2,000 for small websites (1-5 pages) and around $2,000 to $10,000 for medium-sized websites (5-20 pages).
• Agencies can charge over $10,000 for larger projects or more complex websites, especially if they include advanced features like e-commerce​.

Branding is not a one-time project. It involves essential and ongoing costs.

• What do you pay just once?

One-time costs are the essential investments to set up your brand, like designing a logo or building a website. You invest in these services just once to establish your brand.

• What do you need to support continuously?

Ongoing costs are needed to keep your brand active. You must update your website, run social media campaigns, or maintain your online presence. These help your brand stay fresh and relevant.

Here are three scenarios with three different budgets. Let’s see how to make the most of each branding package pricing.

If you have a tight budget, focus on essential things. Get a solid logo, basic brand guidelines (colors, fonts), and a simple website. Freelancers offer logo design pricing from $300 to $2,500 and $500 to $2,000 for a basic site. You can also create certain elements yourself with tools like Canva or Wix.

With these funds, you can order audience research, refine your brand’s identity, and upgrade your website with more custom elements. This is where a small agency might become a partner. They often offer custom branding packages for $5,000 to $15,000.

With this sum, you can go big. Invest in a full-scale rebrand or brand launch that includes in-depth research, custom design, and high-end websites. Branding agency fees are around $20,000 and up for these comprehensive services. But you will get a professional brand design for long-term growth.

Just imagine – BP (British Petroleum) spent $ 5.72 million to redesign its logo and $211 million!!! to refresh its brand positioning. The new logo shows the company’s focus on eco-friendliness. It features green and yellow colors, which symbolize nature, and leaf-like shapes to emphasize its environmental message. Even if the design faced much criticism, BP is rated one of the top ten green brands.

Branding agencies and freelancers offer different prices. It is often tempting to opt for affordable branding solutions, but will it work? Let’s compare both options:

You just need a logo or brand guidelines created. Freelancers are a good fit if you have a smaller budget or tight deadlines. This choice is ideal for startups or small businesses that are only shaping their brand. Their flexibility and lower costs can be a big win for young entrepreneurs.

You are looking for a unique branding solution. Agencies work best if you have a bigger budget and want a team of experts. This approach is advisable if your brand needs a complete revamp or you need someone to handle complex tasks like research and brand strategy.

Imagine you have launched your brand. What’s next? Be ready for additional financial injections:

Branding can feel like a black hole that endlessly consumes your money. Actually, you can control and improve your spending with these simple tips:

Finally, do not forget to measure the impact of your branding. These metrics will help you understand whether you are on the right track:

Branding is never cheap, but it is a must for your business growth. Without a strong brand, you are just another no-name company in the overcrowded market. However, it is easy to spend a fortune on branding needs and still not achieve the desired results. How to find the right branding service that would not ruin your finances? Start with consultations. DreamX is a professional design company that offers branding and rebranding services. Our brand consulting fees are transparent and affordable. Are you interested to learn more? Get in touch with us!