Patent Attorney and Founder
If you design a logo for someone, how do you get paid? Is it a one-time fee, or can you take a cut of every shirt they sell? I hear this question a lot.
Most of the time, the business that hires you pays a flat fee. You hand over the logo, and with it, the intellectual property rights. In other words, once they pay, it’s theirs, not yours. That setup is called a Work Made for Hire agreement. A legit logo designer should provide a contract that clearly says this. If they don’t, I’d think twice about hiring them.
Now, could you ask for royalties instead? Sure, you can structure the deal however you want, as long as it’s in writing. If your contract says you get 5% of every sale, then that’s the deal. But in practice, royalties for logos are rare. Businesses usually want clean ownership, not ongoing payments to an artist.
There’s one small exception worth noting: portfolio use. Most designers keep the right to show their work in their portfolio. That’s normal. What’s not okay is posting the logo online before the company is ready to launch. I’ve seen it happen, business owners planning a big reveal, only to have their logo show up on Facebook weeks early. That can ruin months of planning.i3
So, in short:
- Flat fee with ownership transfer is the norm.
- Royalties are possible, but unusual.
- Portfolio display is standard, but timing matters.
It all comes down to a clear contract. No surprises, no headaches.