No one likes to feel that their work is unrewarded, obviously. When entering a contest, designers obviously understand that there is a risk involved that they might not be paid for their work. If you are going to hold a contest like this, then you need to specify in advance that you will not choose a winner if there is nothing that you like. I personally would never enter a contest like that, but I would certainly appreciate being warned in advance with a disclaimer so that I wouldn't feel that I totally wasted my time.
If you want a good logo, $200 to $300 would be a good minimum prize level. Obviously, the higher the prize, the higher quality the entries will be. Many designers get $200-$500 (or even more) for logos when they know that they are certain to get the money for the design. Not too many top-notch designers will take the time to enter a contest unless the prize is more than they would normally get. Just remember that the higher the prize, the more designers you will have enter and the more EXPERIENCED designers you will have enter. If you've already admitted to having a couple of designers try it and you haven't used their work, then people are going to be reluctant to enter, so the prize money will have to be good to get the good designers to give it a try.
A deadline IS important. Stick to it as much as possible. If you want to extend the contest deadline, give a little advance notice (at least an hour before the original deadline is up), and do NOT accept any entries that are submitted after the deadline. Rules are rules and accepting entries after the deadline is unfair to those who worked hard to get their entries in within the deadline. Also, be sure to give the time zone when you post the deadline. And if you extend the deadline, also be sure to extend it by at least 24 hours, if possible. That way, designers who have already entered have time to make changes.
And be sure to make the deadline long enough. If you give a 1-2 day deadline, you'll probably get some rush jobs.
Give as many details as possible when you start the contest. If you have particular logos that you like the style of, post them if possible. Designers like to have an idea of the particular style that you prefer before they start, and we also need to know what colors you prefer and as much about your company and what the logo will be used for as possible. Designers also don't want to waste their time or yours, so by giving as much detail as possible up front, you'll get better entries that are more likely to fit what you're looking for, and the designers will be happier, too.
Good luck with your contest
