The degree to which designers despise these types of services is well known, so I won't go too deep into it. In my opinion if you're serious about your business you should sit down with somebody and flesh out an actual plan for the face of your business. Using a contest is certainly one way to get your logo, but what you save up front could cost you down the road. There are several possible issues that can arise with a logo, and a professional will be able to alert you of them and help you steer clear.
I've met with several people who've used contest sites before, and in my opinion none of them got what they paid for. Most of them can't explain what the logo elements represent or why they're being used ("I don't know, it's just a marble thing" was my favourite).
I just recommend you talk to a couple designers and get a feel for what they might be able to do for you. If you feel the contest offers a higher value, then have at 'er.
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