Believe it or not, I really can't make up my mind about who is getting the worse end of the bargain. For example, great design work is often about constraints and questioning assumptions.
This process seems to keep everybody involved solidly within their comfort zone. I doubt many companies get what they wanted, and not because of pay. The process seems to be a way to shortcut the process of communication and thought, not just getting work cheaply.
Two examples. One company produced a beautiful animation based around "balance;" never to mention it again in word or deed. A web designer used a photo of a tree. Why? Why not. These are not identities, they are elements dropped into the layout. An identity would be where the company used web copy to relate the concept of balance to their philosophy of business. Same with relating web design to a tree. Imagery and text reference each other. The soul of identity is consistency and integration, not pretty trinkets dropped into a container, in the way a crow lines its nest.
The entrants get out of the work of landing a client. The company gets out the work of considering what their objectives are. The money almost seems like a symptom, in the small sample I looked at.
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