$400 for a logo? Why are you so expensive?
clientsfromhell.tumblr.com
clientsfromhell.tumblr.com
The software equivalent I find goes like this:
Business person rings up to ask us to develop a software package to run his business. The spec is always somewhat vague and very idiosyncratic. The businessman then explains that once we have developed this software for him then we will be able to sell it to lots of other businesses and that he will only ask for half the income in exchange for his amazing business knowledge. Plus, of course, we will be able to use his (free) implementation as a reference site.
We usually manage to contain our enthusiasm and decline these wonderful offers.
You can't blame a guy for trying, it is up to you as a front line contact to try to negotiate the best deal, declining them outright is not always the best course of action.
Google is more of an application, which is accessed primarily via their web UI (other options for access are clients such as you find on various mobile devices and desktop widgets).
A static web page is much much different than Google or a similar webapp. Not to say that developing a static site that adds value for a business isn't worthy, but it's quite different from Google.
If you must outsource the design, you should pay more than $400 and reiterate probably 5 - 10 times to get what you want.
I can't scream from the rooftops loud enough to stay away from spec work. Some bad things happening from it on all sides.
It has a "contest" model and I am leaning towards trying it out ($39 is not recoverable if the contest is a disaster).
Asking someone to complete work for the chance of payment is downright evil in my book. I view it as the pyramid scheme of the design world.
Best thing to do is look at other contests, find a designer you like and contract them.