Bad Logos Are Costly. Here’s How to Avoid Them

Bad Logos Are Costly. Here’s How to Avoid Them

Bad Logos Are Costly. Here’s How to Avoid Them

What do all great logos have in common? They’re simple, memorable, and distinctive. They also quickly communicate your brand identity, all without growing outdated too fast.

If the recipe for good logo design is so obvious, then why do so many companies regularly make the news for bad logo designs? Well, it’s because creating a good logo is easier said than done.

As designers at the digital design agency Fivecube, we regularly have to intervene after logo design goes wrong and fix costly bad logo mistakes. Here’s our guide to avoiding these mistakes in the first place.

Why Logo Design Matters

You have only 50 milliseconds to make a first impression. Your logo is usually the element that draws their attention first, whether it’s featured in your website’s navigation bar, mobile app’s welcome screen, or product packaging.

A unique logo that reflects your brand’s personality can grab your potential customers’ attention, forcing them to slow down and spend a bit of time to learn more about your company. It also makes your brand more memorable among other businesses.

What’s the Cost of Bad Logo Design?

A bad company logo can easily turn into a PR nightmare or cause financial losses. Here’s why:

  • In high-profile cases, bad logos make for bad press, which can hurt your brand’s reputation

  • Inconsistencies between the logo design and the rest of your visual identity undermine brand recall, which might cost you potential customers and revenue

  • A generic logo design that doesn’t stand out also reduces brand recall

  • Bad logo design makes your company look amateurish, leading to lower conversion rates

3 Bad Logos to Serve as a Cautionary Tale

Great logos often don’t make the news because that’s what customers expect by default. But when logo design goes wrong, trust us: it won’t go unnoticed. Here are just three examples to prove our point.

2012 London Olympics

london 2012 olympic logo

Be honest: if you didn’t know that this was a logo for the 2012 Olympic Games, how long would it take you to understand the shapes actually represent numbers? This design choice left the logo too open to misinterpretation, with the Iranian government notoriously claiming it represented the word Zion, for example.

Pepsi 2008 Rebranding Fail

pepsi example

It’s hard to believe it today, but the logo on the left cost Pepsi an astounding $1 million. Although changes aren’t astounding, that’s not the main reason it’s one of the better-known bad logo redesigns. After the initial proposal leaked, questions started arising about the reasoning behind the new logo.

In short, the design agency Arnell said the logo was evoking the golden ratio, the Mona Lisa, the Parthenon, the Gutenberg Bible, the Earth’s magnetic fields, and the Solar system. None of that is actually related to soda, as you can guess.

Gapgate: Logo Gone in 8 Days

cap example

Gap, the U.S. apparel company, fumbled its logo redesign so much that it’s become known as Gapgate. Its new logo basically erased any personality the company had established in the past, and its font choice was criticized as too generic.

To add insult to injury, there was no reason to redesign the logo: it was still standing the test of time. That’s why Gap’s customers at best didn’t understand the purpose of the redesign and at worst ridiculed and rejected the new logo.

3 Logo Design Mistakes & How to Avoid Them

If you don’t want to become another entry on a similar list of bad brand logos, here’s how to avoid the three most common logo design mistakes.

Outdated or Hyped-Up Styles

If your hand is itching to use 3D gradients, 1990s clip art, or funky fonts that came with Windows XP, step away from the keyboard and hire professional graphic design services. Do the same if you’re tempted to jump on the latest trends in graphic design: they may end up too short-lived.

Solution: A good logo is as timeless as it can get. If you want to evoke that years-long experience, go for a vintage logo. And if you want a modern one, on the other hand, prioritize following the established logo design tenets and trends.

Too Many Details

The more complex your logo, the longer it takes for anyone to wrap their head around it. On top of that, it might make it impossible to use if it needs to be scaled down (e.g., when you need it for motion design services or the website’s navigation bar).

Solution: Communicate the main visual idea behind your logo in as few graphic elements as possible. Alternatively, you can create logos with a different level of detail for different mediums (e.g., billboards vs the website), but that might make design consistency more challenging.

Boring, Conventional Imagery

While irrelevant graphic elements would definitely confuse your target audience, going for obvious visuals will make your logo forgettable. It’s particularly challenging in highly competitive fields like FinTech, too (check out our Lyber case study for more details).

Solution: Consider your brand identity, along with your product’s or business’s name. Focus on what makes it unique, and strive to reflect it in the logo. That can include using a mascot and adding unusual typography. Avoid stock logos at all costs!

If you don’t want to become another entry on a similar list of bad brand logos, here’s how to avoid the three most common logo design mistakes.

Outdated or Hyped-Up Styles

If your hand is itching to use 3D gradients, 1990s clip art, or funky fonts that came with Windows XP, step away from the keyboard and hire professional graphic design services. Do the same if you’re tempted to jump on the latest trends in graphic design: they may end up too short-lived.

Solution: A good logo is as timeless as it can get. If you want to evoke that years-long experience, go for a vintage logo. And if you want a modern one, on the other hand, prioritize following the established logo design tenets and trends.

Too Many Details

The more complex your logo, the longer it takes for anyone to wrap their head around it. On top of that, it might make it impossible to use if it needs to be scaled down (e.g., when you need it for motion design services or the website’s navigation bar).

Solution: Communicate the main visual idea behind your logo in as few graphic elements as possible. Alternatively, you can create logos with a different level of detail for different mediums (e.g., billboards vs the website), but that might make design consistency more challenging.

Boring, Conventional Imagery

While irrelevant graphic elements would definitely confuse your target audience, going for obvious visuals will make your logo forgettable. It’s particularly challenging in highly competitive fields like FinTech, too (check out our Lyber case study for more details).

Solution: Consider your brand identity, along with your product’s or business’s name. Focus on what makes it unique, and strive to reflect it in the logo. That can include using a mascot and adding unusual typography. Avoid stock logos at all costs!

If you don’t want to become another entry on a similar list of bad brand logos, here’s how to avoid the three most common logo design mistakes.

Outdated or Hyped-Up Styles

If your hand is itching to use 3D gradients, 1990s clip art, or funky fonts that came with Windows XP, step away from the keyboard and hire professional graphic design services. Do the same if you’re tempted to jump on the latest trends in graphic design: they may end up too short-lived.

Solution: A good logo is as timeless as it can get. If you want to evoke that years-long experience, go for a vintage logo. And if you want a modern one, on the other hand, prioritize following the established logo design tenets and trends.

Too Many Details

The more complex your logo, the longer it takes for anyone to wrap their head around it. On top of that, it might make it impossible to use if it needs to be scaled down (e.g., when you need it for motion design services or the website’s navigation bar).

Solution: Communicate the main visual idea behind your logo in as few graphic elements as possible. Alternatively, you can create logos with a different level of detail for different mediums (e.g., billboards vs the website), but that might make design consistency more challenging.

Boring, Conventional Imagery

While irrelevant graphic elements would definitely confuse your target audience, going for obvious visuals will make your logo forgettable. It’s particularly challenging in highly competitive fields like FinTech, too (check out our Lyber case study for more details).

Solution: Consider your brand identity, along with your product’s or business’s name. Focus on what makes it unique, and strive to reflect it in the logo. That can include using a mascot and adding unusual typography. Avoid stock logos at all costs!

Final Thoughts

Bad company logos can turn your business into the subject of ridicule and even cost you customers and revenue because of poor brand recall. To avoid a bad logo, you’ll need to ensure your logo strikes the right balance between simplicity and memorability, recognizability and timelessness.

Need a fresh logo for your new venture or a logo redesign for an existing one? Fivecube’s designers can create one that reflects your brand identity and makes it memorable. Get in touch with us to discuss your logo design needs in-depth.

Jul 24, 2025

By

Fivecube Team

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