Quantifying a brand

6/16/2011

Many entrepreneurs get caught up designing a valuable logo, with some even paying branding companies thousands to develop something they believe will resonate with an audience. However, as Inc. magazine recently suggested, a logo is nothing by itself - customers care about the brand behind the graphic, not the icon itself.

People look at iconic graphics, such as the Nike swoosh, and falsely believe a logo will help them sell more products due to brand recognition. However, the original Nike emblem was designed for only $35 - it's the products and people behind the logo that made Nike a multi-billion dollar company.

"So when estimating the value of your brand, focus less on what your logo might be worth and more on quantifying your customers' repeat purchase rate. If you can demonstrate that your brand drives your customers' loyalty, then your logo, brand and customer list may indeed be the most valuable part of your business," the source asserts.

That isn't to downplay the importance of a well-designed logo. A graphic can help a small business stand out from its peers, helping it to generate broader awareness.