Please provide examples of these "logos" so we can see what your end product of this farce is. I would love to see it.

There are example logo's on his site.

Personally (and i'm sure I speak for most designers here) I wouldn't get out of bed for $50 in a day. You could earn almost twice that flipping burgers at McDonald's. What exactly are you running here?

Very true, you could.

You are outsourcing (most likely behind your clients backs) logo jobs to designers? and for "beans" pay whilst probably pocketing very large profits doing so, and producing what could only possibly be mediocre logos at best.

The logo's are being sold for $25 and he's thinking of paying $15+ to the designer.

This kind of "crap" (for lack of a better word) is seriously killing the industry. It reminds me of 99designs and the like. Why don't you get a talented young designer who lives in Perth to come and work for your company full time, and pay him like he should be paid?

I charge little because I still want to gain more experience, but about "killing the industry" you are correct. Because of people selling for low price it makes everything almost slave "virtual" labour. Really logo's/web design should be worth a hundred or more because of the time and experience needed to forfill the job. Sadly an hourly rate like a real job is almost impossible in the freelance word because not everyone is honest about their work.

I'm not trying to slam iigfx for being cheap. The general public look for more affordable designers but there should be a difference between "cheap" and "professional".