“Can you do it for NPR 15,000?”

I hear this question almost daily. And my answer is always the same: “I can, but you won’t like the result.”

In Nepal, the digital marketing industry is engaged in a race to the bottom. Agencies are undercutting each other to offer “30 Posts + Ad Management + SEO + Logo Design” for the price of a mid-range smartphone. Business owners think they are getting a deal. In reality, they are setting their cash on fire.

The Economics of NPR 15,000

Let’s break down the math. If an agency charges you NPR 15,000 per month, and they have office rent, internet costs, and taxes, they likely profit NPR 3,000 from you. To survive, that agency needs 50 clients. This means one poor graphic designer is making 1,500 posts a month.

Do you think that designer has time to understand your brand? No. They are copy-pasting Canva templates.

The 3 Hidden Costs

1. Reputation Damage

Cheap agencies post content with typos, broken links, and pixelated images. When a potential customer sees a low-quality post, they assume your product is low-quality. Cost: Irreversible damage to brand trust.

2. The “Bad Lead” Tax

Cheap ad management focuses on “Clicks” because clicks are cheap. They will get you 1,000 clicks from people who have no money and no intent to buy. Your sales team will waste 50 hours calling leads who hang up on them. Cost: Wasted salary of your sales team.

3. Opportunity Cost

While you are spending 6 months realizing that the cheap agency isn’t working, your competitor hired a pro. They spent NPR 50,000, but they dominated the Google Search results for “Best Resort in Chitwan.” By the time you wake up, they own the market. Cost: Millions in lost revenue.

How to Budget Correctly

Marketing is not an expense; it is an investment. A good rule of thumb for Nepali businesses:

  • Small Biz: 5-8% of Revenue.
  • Growth Mode: 10-15% of Revenue.

If you cannot afford a good agency, don’t hire one. Instead, invest in training your own team or yourself. A founder with an iPhone and passion is better than a cheap agency with a template.