Is design a good business to be in? It seems everyone with a computer and a copy of Photoshop is a designer. That includes people anywhere in the world, be it downtown Manhatten or Bangkok Thailand.
Something thats been popular in webmaster message boards for a while now is logo contests. The way it works is someone says, logo contest, winner gets $X (usually between $100 to $300 max, sometimes lower.) They give a general description of what they are looking for and wait. If the payout is over $200 designers frantically submit their designs, usually filling up a couple of pages. The contest ends, and a winner is chosen by the person who started it.
The downside is, if you didn’t win you get no money (although you might get a job request from someone who liked your work.) Other than that slight upside, its a pretty crappy deal. Its kind of like construction companies bidding for a project, but they all have to do it and only one gets paid. Ok, there isn’t nearly that level of risk, but the point is the same. You are working for a chance to be paid. I could draw some comparisons to other “careers” like professional sports such as golf. However, in this case the stakes are a lot lower.
To me this process shows desperation on the part of designers. No legitimate search engine optimizer would ever agree to do the same, nor would many other service businesses.
If you want to make good money online its critical that you do something that is in high demand — and has a high barrier to entry. In this case the demand for logos is high, but the barrier to entry is low. A computer and a little understanding of art is all you need.
As a business owner you want to be in a position to benefit from cheap services, not be hurt by them. Today its logo design, tommorow it will be something else. There are major forces at work right now that are spreading wealth globally. To some people these changes are painting a dark future, to many more, its looking very bright. Over the next few weeks I will be blogging about how to welcome and benefit from these changes rather than fear them.