According to thefreedictionary.com the logo is: “graphic representation or symbol of a company name, trademark, abbreviation, etc., often uniquely designed for ready recognition.” There are two important aspects mentioned in the definition: trademark and ready recognition. Both basically summarize the key reasons why logo is important.
Logo can be trademarked, which is important because trademark has a value and is a sellable commodity. If your products become popular and you decide to sell your business, having your logo trademarked will increase the value of your company. Coca-Cola’s logo, for example, is currently valued at $55B (designed by compan’s co-founder).
The phrase summarizes the important requisites of a logo, quite many of them. In order for a logo be a “ready recognition” it has to be simple, original, visually readable, describing not only your products or services but also a character of your company. Sure you can take a stab at it yourself. Besides, some of very famous logos were developed very inexpensively. Two famous examples are Nike’s swoosh, designed for $35 by an art student who needed money for oil paint, and the Twitter logo, bought from a illustrations database website for $15, the actual artist got only $6. Today design agencies could charge as much as $5000 for a logo (we don’t charge nearly that much by the way).
Logo is an important ingredient to your success, don’t overlook it!