Flame Design
A deposit speaks even louder than a contract. We never accept a client who is not willing to put down a deposit. This is not a game of "lets see what he can do, and maybe we'll consider buying it". You are not selling a painting, you are selling a service. Why should you design a custom logo without committment? They could easily snatch up your idea and send it along to the next guy. If someone approaches you with this in mind 1)they do not see you as a professional and they feel a considerable amount of risk or 2)They are not worth the time of day!
Get what you deserve!
The standard deposit is 50% for most design projects. Larger projects can be broken down into a payment schedule.
I am not sure what level your design work is at, but I would consider $100-150 quite low for a professional logo design - unless you consider it a 'quickie'.
Do not fall for the "I'll get more work for you" line. You will hear this quite a bit when you are first starting out. Small business owners can smell start-up freelancers and often use this tactic to bring your price down, but usually nothing will become of it. And if you did a good design, you deserve a referral anyway! Your perfect comeback is "My price remains firm, however I will give you a 10% commission on any referals." Now you have your *** covered ;)
Grease
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