5 Types of Channel Letter Signs - How to Choose the Best One for Your Business

In the split second it takes a potential customer to drive past your storefront, your signage needs to work harder than any other marketing tool you own. That's where channel letter signs come in. The undisputed heavyweight champions of commercial signage that turn casual passersby into paying customers, 24 hours a day.

During the day, they provide crisp, professional visibility that reinforces your brand. At night, they transform into brilliant beacons that guide customers to your door.

To maximize this dual impact and boost your property's curb appeal, you'll need to choose the right style for your business. Let's explore your options.

1. Front-Lit Channel Letters 

Front-lit channel letters, also known as face-lit channel letters, are the most popular custom signs, and for good reason. During the day, their colorful acrylic faces create bold, eye-catching displays. At night, internal LEDs illuminate the letter shapes, creating bright, vivid signage that's visible from long distances. 

This round-the-clock versatility makes them ideal for retail storefronts, shopping centers, and restaurants that need to capture attention in high-traffic areas.

The best front-lit letters are fabricated using durable aluminum and high-impact UV-resistant acrylic to ensure color accuracy and longevity. When paired with energy-efficient LEDs, they offer a brilliant return on investment by providing maximum visibility with minimal power consumption.

Key Insight: Front-lit illuminated channel letter signs offer the perfect balance of high visibility, versatility, and cost-effectiveness, making them the default choice for most retail and commercial businesses needing to attract attention day and night.

2. Open-Face Channel Signage

Open-face channel letters are the perfect choice if you're looking for a retro, nostalgic, or high-energy vibe.

This style features an exposed light source, typically modern LEDs that mimic classic neon, creating a dazzling marquee effect. The colored letter interiors add visual interest by day, while they come alive with raw, vibrant light at night.

This type of channel letter sign is exceptionally well-suited for theaters, bars, casinos, and themed restaurants. Modern LED technology makes this classic look practical and sustainable. According to the U.S. Department of Energy, energy savings from LED lighting could top 569 TWh annually by 2035, meaning you can achieve that vintage aesthetic while reducing energy costs and ensuring easier code compliance.

3. Reverse-Lit Channel Letters

Indoor Back-lit Channel Letter Sign

Outdoor Back-lit Channel Letter Sign

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  • Durable & weather-resistant
  • Energy-efficient LED technology
  • 24/7 visibility
  • Customizable Design
  • Can be flush-mounted or raceway-mounted
  • Durable & weather-resistant
  • LEDs last up to 50,000 hours
  • Unmatched visibility
  • Fully Customizable
  • Made from quality aluminium and acrylic
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For a touch of elegance, nothing beats reverse channel letters. Also known as halo-lit letters or backlit signs, these letters have solid metal faces with internal LEDs that project light backward onto the mounting surface. This creates a soft, distinguished "halo" effect around each character, producing a high-end look perfect for exterior signage.

Halo channel letters are perfect for corporate headquarters, law firms, and boutique hotels aiming to project an image of quality and trust. Reverse channel letters are stud-mounted with standoffs to create a gap for the light to escape, resulting in a subtle, refined sign. The wiring and power supply are carefully concealed within the letters for a clean installation.

4. Combination-Lit (Front + Halo) Channel Letters

Why choose one lighting style when you can have the best of both worlds? Combination-lit channel letters feature an illuminated face and a halo effect. These dual illuminated channel letter signs have visual impact, maximizing brightness and depth for an unforgettable impression.

The storefront sign is intensely visible from long distances, while the backlighting adds a dimensional halo effect that makes the letters appear to float off the building.

This type of channel letter sign is perfect for businesses in competitive retail districts seeking premium exterior signage. While the initial investment is higher, the unparalleled branding impact delivers exceptional value.

5. Non-Illuminated Channel Letters (Formed or Aluminum)

Sometimes, an illuminated sign isn’t necessary or permitted. Non-unilluminated signs are a fantastic solution for interior applications, historic districts, or businesses that only operate during daylight. 

They provide the same dimensional impact as their illuminated counterparts without needing internal lighting and wiring.

The primary benefits of these types of signs include lower costs, faster installation, and zero energy consumption. Pair these letters with external lighting such as gooseneck lamps or floodlights for nighttime visibility. 

How to Choose the Right Channel Letters for Your Business

Selecting the perfect sign type involves balancing several key factors. We recommend considering these five points to guide your decision:

  • Brand goals: Define the image you want to project. A halo-lit sign conveys luxury, while a front-lit channel letter sign creates an energetic and fun impression.
  • Building facade: Review your building’s surface, color, and texture, and make sure to check local regulations on sign size and illumination.
  • Illumination needs: Businesses that operate after dark or compete with brightly lit signage in the area benefit greatly from illuminated signs.
  • Budget: Non-illuminated signs offer the lowest initial cost, but illuminated signs often deliver better long-term ROI by attracting more customers.
  • Project timeline: Consider how quickly you need your sign installed. A fast turnaround can be critical, which is why SignMakerz’s standard 3-day ship time is a valuable advantage.

Pro Tip: Before falling in love with a style, check your local sign ordinances and property manager requirements. Compliance is the first step to a successful installation, preventing costly redesigns and delays.

Installation and Mounting Options

Indoor Acrylic Letter Sign

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How your channel letters are attached to the building is just as important as the style you choose. The mounting method affects the visual impact of your signage, installation costs, maintenance accessibility, and long-term durability. The three primary mounting options include: 

Direct or Flush Mount

Direct mount letters provide a sleek and professional appearance that blends seamlessly with the building’s architecture. 

Each dimensional letter is attached directly to the building facade, creating a clean, modern finish that enhances visibility and branding.

A direct mount delivers the most streamlined look, but it requires more preparation, including precise drilling, sealing, and running electrical wiring inside the wall for illuminated options.

Raceway Mount

Letters are attached to a narrow metal box, or "raceway," that contains all the electrical wiring. The raceway is then mounted to the wall, simplifying installation. 

A raceway mount is particularly cost-effective for retrofitting existing buildings or when dealing with landlord restrictions on multiple wall penetrations.

Backer Mount

Letters are mounted to a larger backer panel or cabinet, creating a bold and versatile display. This approach helps the sign stand out visually and conceals imperfections or uneven wall surfaces for a cleaner finish.

The backer panel offers excellent structural support, making it especially effective for larger letter sets or heavy materials. The backer mount method also allows for creative customization, as panels can be fabricated in different shapes, colors, and finishes.

Borders, logos, and accent lighting can also be incorporated into the design, giving businesses more flexibility to reinforce their branding and attract attention.

Top Benefits of Channel Letter Signs

Investing in quality channel letter signage delivers powerful advantages that directly impact your bottom line. Here are the key advantages of letter signs:

  • 24/7 brand visibility: An illuminated sign works for your business around the clock. Effective signage is one of the most essential factors for attracting new customers.
  • Durability: At SignMakerz, we use powder-coated aluminum, UV-resistant acrylic, and LEDs to ensure your sign withstands harsh weather conditions for years.
  • Energy efficiency: Modern LEDs use less energy. In fact, LED lighting enabled 1.1 quads of energy savings in 2017, resulting in $12 billion in savings for U.S. consumers.
  • Branding flexibility: From custom fonts and logos to any color imaginable, channel letters offer nearly limitless design possibilities to perfectly match your brand identity.

Request Your Free Quote and Mock-Up Today

Understanding the different types of channel letter signs is your first step toward standing out. Once you've identified the right sign for your business, our expert team is here to help you with the rest. 

We make the process simple and stress-free. Let our designers create a free mock-up so you can see how your new sign will look before making any decisions. You'll see exactly how your business will transform with a professional channel letter sign that commands attention. 

We believe in our craftsmanship, which is why we back every sign with our comprehensive support, including a 24-month warranty on all products. Your business has a story to tell. Contact us today to get started and let your new channel letter sign tell it boldly.