It does suck that the internet means I have to compete with thousands (millions?) of people across the globe. And you're right, that's not the client's fault. New, cheaper technology makes it easier and easier to become an artist who can at least put together something decent. But I recognize that that's just the economic reality.
The reason I'm so vocally opposed to contest-labor, and why I think artists should show solidarity whenever possible against it, is that it's dishonest. Yes, technically all the rules are there in writing. But people see a payment tag of $300 on 99artists and think it means a payment of $300, when what it really means is about $10 (if you know you're genuinely in the top bracket of talent, maybe it's closer to $25. Dunno). Even if you know that it technically means $10, you have to constantly remind yourself of it. And that's a wage that you seriously cannot live off. We may not be able to unionize to keep wages at $25/hour, but we should at least be able to unionize to prevent wages from becoming $.50/hour. Sites like Scriptlance, on the other hand, might drive rates down to $100 for a logo. But at least $100 actually means $100. I'm fine with that.
It's been a while since I emphasized this point, so it's worth repeating: I'm not actually opposed to SIAI doing this. When you're donating time to charity, you're not trying to make a living, you're just donating time. That's fine. But because it also reinforces the image of contest-labor = reasonable, and because this is a blog that is specifically dedicated to helping people make more rational decisions about economic utility, I think it's important to emphasize that this is not a legitimate way for artists to earn money.
But because it also reinforces the image of contest-labor = reasonable, and because this is a blog that is specifically dedicated to helping people make more rational decisions about economic utility, I think it's important to emphasize that this is not a legitimate way for artists to earn money.
I agree that contest labor is a bad idea for artists, which is why I voted you up. But I'm not sure it's a bad thing for SIAI to be using contest labor. If you're hiring, it's oftentimes the rational thing to do. Prizes for creative work are also seen favorably ...
If you have graphic design experience, check out the on-going logo design competition at 99designs for the Singularity Institute. There are still 6 days left to enter and be eligible to win the $295 prize if your design is selected. Tell your friends with graphic design experience too. There are very few submissions currently.
Note: This is a blind contest. Designers can only see their own entries. All designs will be revealed when the contest ends.
If you're interested at getting a peek at the designs, they will be online after the competition is over. This is standard practice in 99designs contests to prevent designers from contaminating each other and having all the designs drift in a certain direction.