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Not everyone wants a logo that is complex and graphical. Some clients will want a logo that looks simple, is easy to read and gets across the name of their business / brand at a glance but is still professionally designed.
Just because a logo is font based does not necessarily make it cheaper than say, a logo which is an icon or complex shape. Just as much thought needs to go into these logos in order to achieve a successful brand message.
It is important that your designer has a good understanding of typography, and and knows how various font faces can communicate different messages. Fonts , like colours can have a positive or negative effect on the viewer. A good example of this would be to tell your designer that you would like to use Comic Sans for your logotype – Just look at the fear in their eyes as the name of said font approches their ears….
Below are some examples of font based logo designs by Pixels Ink