It depends. Our cost for a typical small business logo is $499. The range is anywhere from 0 to thousands of dollars. The reason is you can get one for free, but likely it will not be unique, professional or was made by AI. AI often renders poorly. The current state is bad enough for people to post jobs to fix logos made by AI.
A beginner may charge less than $200. On the other end, most ad/design agencies (I’ve worked in them) will charge a minimum of $2,500. Freelancers typically get $300 to $2,000. This is according the website manypixels.com.
Logo Hammer hits the sweet spot at just under $500. And we might negotiate if you can articulate your case.
Consider the worth of a logo like Apple’s. It is worth over 1 trillion dollars now. Steve Jobs paid $100,000. Pretty good ROI.
So no, $500 is not too much to pay for a logo with the right firm. Factor to consider are experience, the designer’s portfolio, past success, and possibly work done in your particular field though that is very small factor. Most designers can apply design principles to any business with the right information. We typically start with a questionnaire and if needed a full creative brief, especially for a full branding project.