This is a tutorial to explain how to make an embossed watermark from a logo you already have to place on a photo.

This is the logo I am going to turn into a watermark.  Nothing fancy.

There are several ways you can create an embossed effect, it all depends on how you want it to look. The first part needs to be done for either way.

Open up you logo in PSP so that it is on a  transparent layer.  You want to make sure that your canvas is slightly larger than your logo.  If you need to go to Image/Canvas Size and add 20 pixels to the height and width of your canvas.  If you click the center arrow, it will put your logo in the center, duh.

 Now go to Selection/ Select All.  After that go to Selections Float.  This will leave your logo only your logo selected.  Leaving your logo selected go ahead and create a new layer above your floated selection.  This layer is where you are going to make your watermark.

The next steps will decide how your water mark will look.  

Click on the watermark to go to the directions for each type.

All I did for this water mark was go to Effects/3D Effects/ Drop Shadow and apply the following settings.

Since you  had already created a new layer, the shadow is the only thing on that layer.  Go ahead and go to Select/Select None then delete the layer your logo is on. There is your watermark.  Click here to go on to saving your watermark.

This watermark involves more steps.

You should still have your logo selected and a blank layer above it.  You are now going to apply both a cutout and a drop shadow to create the embossed effect.

Go to effects/3D Effects/ Cutout and apply the following settings. 

On the same layer, go to Effects/3D Effects/ Drop Shadow and apply the following settings.

Since you  had already created a new layer, the shadow is the only thing on that layer.  Go ahead and go to Select/Select None then delete the layer your logo is on. There is your watermark. 

 I have found the easiest way to use water marks as such is to save it as a Picture Tube.  To do that go to File/Export/Picture Tube give your watermark a name and save. 

You can see here that when I click on the Picture Tube button (the highlighted one) and open the Picture Tube choices my watermark is there.

Here you can see the two different embossed watermarks on a picture.  The top corner uses both the cutout and drop shadow, while the bottom corner is just a drop shadow.

When I apply a watermark to a picture, I do it on layer by itself.  That just makes it easier for me to move it to the location I want on my picture.