There are six universal attributes of a great Logo Design:

Is it practical?
Can it be printed on scalable sizes with out being fuzzy? Will it work in black and white format as well as in color? Some logos designs become incomprehensible when reproduced in newspaper ads or when sent through a fax machine. Try blowing it up and reducing the logo to determine its readability at different sizes. Keep in mind too that something like 10 million American men and a few women are at least partially color blind. Keeping in mind that color does make a difference. (View our psychology of color)

Is it distinctive?
A logo design needs to be unique and effective, simplicity is key. A design idea doesn't need to be unique to the world, just distinctive enough so you can market your tarket audience.

Is it graphic?
You shouldn't have to explain to people what message you are portraying in your logo design. A effective logo design will communicate purely in graphic terms to the right brain hemisphere, and doesn't depend on verbal intellectual interpretation. This is equally true for all logo designs, whether an iconic logotype, a wordmark or even a simple lettermark. The choice of fonts, shape and color should effectively communicate the essence of the company.

Is it appropriate?
Is the design relevant to your business? Is it consistent with the personality and tone you wish to convey about your business? The content has to be right! An otherwise great logo will fail if the message expressed is at odds with management intentions.

Is it simple?
Simplicity of design makes a logo easier for customers to remember and recognize. A great logo will contain only one graphic idea, one gimmick, one dingbat. Thus if there's a symbol, the accompanying name should be plain and unadorned. If it is a wordmark, one idea or device should make it special- like the stripes in IBM. The more unique the name, the simpler the graphics can be. Think clear contrast and simple shapes, with limited colors and tones.

Does it convey ONE message?
Great designs try to express no more than one attribute and support a single aspect of positioning.

Get opinions from colleagues and from people in your target market instead of merely relying on your own intuition and taste. Also, use this checklist to avoid common problems with logos:

Is it too trendy?
Think of the future and avoid being too trendy. A good logo will last your company 15 years and give your customers a chance to burn the image of your logo into their brains.

If the logo uses words or letters, are they recognizable?
You shouldn't have to explain or decipher the logo for people.
Does it arouse any unwanted associations?
What you intended as stepping stones might come across to others as looking like animal droppings. If you get this kind of honest feedback, pay attention.

Are the colors appropriate?
Colors are powerful. Different colors have different associates and can have predictable effects on your audience. Understanding color associations is imperative!
Do you and others in your company like the logo enough to use it enthusiastically? If not, return to the drawing board.
Go here to see color psycology.