“It’s not whether you have your MBA, it’s where it came from,” writes John Micklethwait, Editor-In-Chief of The Economist. I’m sure on at least two levels, he’s upsetting people. On one level, those without MBA’s are going to find it presumptuous that getting an MBA is a foregone conclusion. On another level, there are thousands of MBA grads who didn’t attend the top tier schools who will take offense as well.
John is smart to be so opinionated because after all, the people who will be buying his magazine are those who have always wondered whether getting an MBA is a good idea. He forces the assumption that if you picked up his magazine, you must get an MBA, and not just any MBA, but one of the top schools from his polls.
I don’t entirely agree with John, but let’s face reality, getting an MBA is gradually becoming the new standard for newcomers to the world of finance because some go-getter decided it was the right thing to do and succeeded to get others to follow. The MBA is also too expensive to not try and go to the best school possible (although it’s not the end of the world). The inertia is too strong to reverse now!
Here are some of the takeaways from the magazine:
1) The average MBA graduate from all schools in the world earn about $90,000. European MBA graduates earn $107,000, compared to $70,000 in Asia.
2) The Top 10 US MBA schools have an average salary + bonus figure of $120,000 – $125,000 post graduation.
3) All six of the American schools in the top ten have average GMAT scores of over 710 (out of 800). In contrast, students at London average 693, at IESE 685 and at IMD just 675.
4) The rankings are based on what the students want: increased pay, to open new career opportunities, develop a larger network, and personal development.
5) “Cheap” programs regularly cost well over $100,000 after accounting for lost wages, tuition, books and living expenses. More emphasis should be put on part-time programs and their benefits given the costs.
SAMURAI $1,000 READER GIVEAWAY
I think it’s pretty clear by now there are enormous monetary benefits of getting your MBA from one of the top schools. We highlighted last week those with graduate degrees have net worth levels 160% higher than those with only bachelor degrees. If you want to make more money, know that an MBA helps your cause tremendously.
The giveaway we are proposing is $1,000 worth of consulting advice to give you the highest chance of getting into your dream school! Getting into a top tier business school could mean the difference of making millions over your post grad career. Go to any MBA consulting service, and they often charge much more. In fact, I was surfing the web and found that a site called “Personal MBA” charges $1,500 to coach someone 2 hours a week for a month for someone to get a “Personal MBA!” (not a real credential, but a great service and good idea!).
What We (Editor and I) Are Going to Do For You:
* We are going to be brutally honest and tell you whether your application has a chance or not. Your parents and friends are nice, but can’t be trusted to tell you the whole truth!
* Good or not, we will optimize your resume, essays, and overall application. You need as many objective eyeballs reviewing your application as possible!
* We will conduct two mock interviews and provide communication tips you need to work on, because frankly, communication is one of the key deciding factors.
* We will will be as involved as you want us to be and are committed to spending up to 8 hours just on your application.
We Think We Are Qualified Because:
1) We both have MBA’s from a couple of the top 10 school listed in The Economist’s rankings above. We’ve also been accepted to several other business schools and have a proven record for success.
2) We have interviewed over 150 MBA candidates in our careers post grad and more than 400 candidates if you include undergraduate candidates. In fact, I (FS) was just at a Haas Berkeley recruiting fair last month for 3 hours. We are the end game (a post MBA employer), and have a solid grasp of what an ideal candidate looks like.
3) We know how the admissions process works and what they look for. How? We have developed friendships with senior people in the admissions department.
We might be small fish in the personal finance blogosphere, but believe me when I tell you one of us, was a very senior executive at a major Fortune 500 firm, and I am no dog chow either. We genuinely just want to help and are not driven by money as evidenced by the lack of ads on the site.
Maybe you’re not interested in getting your MBA, but you have a friend who does. Please feel free to let them know.
To Participate Simply Do One or More of The Following:
* Provide a comment as to why exactly you want to get your MBA and why you disagree or agree with The Economist’s ranking.
* Twitter this post and let me know you’ve done so. Our address is @FinancialSamura
* Tell someone at a major media publication about our giveaway and let us know who. Frankly, if this post gets picked up by The New York Times, you win!
* Invite friends to Financial Samurai by highlighting this post, or any post in our archives on your Facebook “What’s On Your Mind?” box. Have them comment “(Your name) sent me” and any other thoughts as evidence.
Winners Will Be Announced on Sun, Nov 8!
There will be one main winner, and one minor winner based on who are the best publicists. Maybe nobody will be interested, but maybe the internet will work its magic and find people who believe in the degree, and care about their careers, especially since round 1 applications are due in November. It will truly be interesting to see how this promotion evolves or not, and will be the topic of a future post.
People are spending thousands of dollars on GMAT courses as well as personal consultants. High GMAT scores alone aren’t good enough. In fact, I’ve seen plenty of sub 600 GMAT scores and poor undergrad GPA candidates get into top schools. The difference is your overall application, communication skills, and whether you have a connection helping you succeed. This is our attempt at evening the odds!
If you build a relationship with us, by the time you graduate, you’ll have some of your biggest champions introducing you to various people in the private equity, investment banking, management consulting and start up arena. How much is your future worth?
“Get A 3.9 GPA and 1,300 On Your SAT’s And You’re Set For Life!” (a first chance at school)
“Go To Grad School, Get Rich Or Die Trying” (a second chance at school in case you messed up the first time)
“To MBA or Not To MBA” (what went through my head when I was deciding whether to go)
Financial Samurai – “Slicing Through Money’s Mysteries”
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