I think the author of the article is over analysing. Sure contest holders are missing out on the benefits of a (long term) business relationship, but how important is that when 'all' they want is a logo. I've seen plenty of successful contests where the contest holder has come away with a really nice looking logo, and I've seen contests that have ended with no winner - nothing lost there for the contest holder. From the contest participant's perspective though, it really is a big risk (unless you're doing it for fun or a learning experience) if you invest a lot of time and effort into creating a design. Often there are many designers competing against each other, and there can only be one winner.
As someone who does take part in design competitions, I can say I do it for fun and to try and improve my skills - it's not my livelihood so I don't mind the fact that I never win
Interesting post blake, what do you think?
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