A free logo is never free. It is a loan, and the interest compounds quietly until the day you try to do something with your brand and discover what you actually bought. Here is the itemized bill.
Line item one: shared DNA
Free generators and $5 marketplace logos draw from shared icon libraries. The mountain-in-a-circle you chose has been chosen thousands of times, in your industry, this year. You will meet your logo's siblings at trade shows. Customers who half-remember "the one with the mountain" will find your competitor first. Whatever you spent on making that impression is transferred to them, with your compliments.
Line item two: no legal footing
Trademark protection favors marks that are distinctive and actually distinguishable. A stock icon used by hundreds of businesses is nearly impossible to defend, and in many license agreements you do not even hold exclusive rights to the artwork. If a funded competitor adopts something similar, your options are: nothing. Ownability is not a luxury feature. It is the difference between an asset and a costume.
Line item three: the file problem
Free tiers hand you a small PNG and hold the vector files for ransom, which is a reasonable business model and a terrible deal. The moment you need print, merch, signage, or a favicon that does not look like lint, you are back paying, and now with zero leverage. Several subscription logo makers go further: stop paying and you lose the license to your own mark. That is not a logo. That is a lease with your name on the storefront.
Line item four: the rebrand you already scheduled
Businesses that start with a placeholder logo almost always rebrand within a few years, and rebrands cost far more than logos: new signage, new packaging, updated listings, lost recognition, explaining yourself to customers. The free logo did not save you the cost of a real one. It added a full teardown fee in front of it.
Free is a fine price for a first draft. It is a terrible price for an identity. Know which one you are holding.