I am really digging the Just Creative Design blog of Jacob Cass. He also has a project called Logo of the Day which I find not only incredibly inspiring, but keeps us on our toes.

Jacob has an article called Why Logo Design Does Not Cost $5.00.
In summary, he explains everything that goes behind a professional logo design vs. a $5 logo.
    1. The Design Brief: questionnaire or interview with the client
    1. Research: research focused on the industry, history, and competitors
    1. Reference: research into successful logo designs in the above industry
    2. Sketching & Conceptualising: developing the logo design around the brief and research. They use creativity and know how to design a logo.
    3. Reflection: They take breaks throughout their design process. This lets their ideas mature and lets them get renewed enthusiasm and receive feedback.
    4. Presentation: They then choose whether to present only a select few logos to the client or a whole collection.
  1. Celebration: They then drink beer or eat chocolate or sleep or start on next logo design. Or a combination.

These are just a few points why you should invest more than the lowest bid. I highly recommend taking a look at Jacob Cass’ blog. It’s loaded with awesome tips and information.