A lot of MBA aspirants are ROI-conscious, and that’s perfectly fine. In fact, not being aware of the financial implications is often the reason for stress later on in the joruney. But is ROI only about money?
Any major investment, like an MBA, demands not only money but also lots of time and serious effort. So it’s crucial to make sure the payoff is truly worth it.
For most young professionals, an MBA is a once-in-a-lifetime experience. No wonder the race to get into the elite business schools is so intense. The admissions process is long, complex and often confusing. Every competitive advantage contributes to success.
For such a high-stakes endeavour, that expects you to give your best at every single stage, being penny wise and pound foolish isn’t a good strategy.
Getting into an MBA program that’s the perfect fit for you can be a game-changer for your career. Also, having a top brand name on your resume that you can leverage for the rest of your career or bagging a partial/full scholarship that can greatly reduce your financial burden – these are among the top aspects that can give you the ROI boost.
That brings us to these questions –
- Would you consider hiring a premium admissions consultant if this can significantly improve your odds of an admit / scholarship?
- Would you be happy to invest ₹5 lakhs for a premium MBA admissions consulting?
- How does this consulting fee figure in the larger MBA picture in terms of ROI?
In this article, we’ll explore the above questions by taking a look at the actual economics of the MBA journey.
Several applicants take the MBA admissions process lightly “I’ll just take the GMAT, apply to a few schools, and see what happens.” That optimism usually costs a lot more than you’d expect.
If you zoom out, you’d realise that the consulting fee is one of the smallest expenses. But it can have the biggest influence on the outcome. Let’s break down the numbers to understand better:
Understanding the Economics of an MBA
1. The cost of applying to MBA programs
| A. Test Prep + Test Attempts | ||
| Test prep course/tutoring | $300 – $1000 | ₹30,000 – ₹90,000 |
| GMAT/GRE test fee (usually 2 attempts) | $450 to $600 | ₹40,000 – ₹55,000 |
| Retake prep (very common) | $200 – $350 | ₹20,000 – ₹30,000 |
| Typical total | $950 – $1,950 | ₹90,000 – ₹1.75 lakhs |
| B. Application fees | ||
| 1 school | $250 – $275 each | ₹20,000 – ₹25,000 |
| 5 schools | $1,250 – $1375 | ₹1.10 – 1.25 lakhs |
| C. Premium MBA Admissions Consultant Fee in India | ||
| 5-school package | $5,600 | ₹5 lakhs |
(All $ values in USD)
The total pre-admission cost adds up to around ₹7 lakhs – ₹8 lakhs. And this is just the trailer before the movie begins. The real expenses start after you get an
admit.
2. The cost of attending an MBA program
Irrespective of whether you hire an admissions consultant or not, these numbers remain the same.
| Tuition Fees | ||
| USA (2-year program) | $110,00 – $165,000 | ₹1.00 – ₹1.50 crores |
| Europe (1-year program) | $60,000 – $110,000 | ₹50 lakhs – ₹1.0 crore |
| Living Expenses | ||
| USA (2-year program) | $35,000 – $45,000 | ₹30 – 40 lakhs |
| Europe (1-year program) | $20,000 – $30,000 | ₹20 – 25 lakhs |
| Total Cost of Attendance | ||
| USA (2-year program) | $145,00 – $210,000 | ₹1.3 crores – ₹1.9 crores |
| Europe (1-year program) | $80,000 – $140,000 | ₹70 lakhs – 1.25 crores |
(All $ values in USD)
One interesting point to note is that the MBA consulting fee (approx.₹5 lakhs) is just 2.6 – 7% of the total cost incurred for an MBA.
Yet some applicants feel reluctant and spend a whole lot of time debating whether or not to hire a consultant.
3. Post-MBA salaries (where the real money is)
A premium MBA looks expensive only when you take the plunge without a solid plan. Let’s look at what you typically earn post-graduation:
Post-MBA Salaries
| Location | Post-MBA salary (USD) | Post-MBA salary (INR) |
|---|---|---|
| USA | $160,000 – $205,000 | ₹1.4 crores – ₹1.8 crores |
| Europe | $100,000 – $150,000 | ₹90 lakhs – 1.35 crores |
Also read: Average MBA salaries in the world
Let’s say you currently earn ₹12 lakhs per year. A globally reputed MBA can push your first-year salary ₹80 lakhs to ₹1.7 crores higher annually (compared to your pre-MBA salary) depending on the geography, industry, role.
And here’s the fun part. All MBA programs are not equal. The average salary at Babson is $108,308, while the same at Duke Fuqua is $175,000.
A good admissions consultants can help you get into a higher ranked program, and that alone can make a difference of over ₹50 lakhs per year in post MBA salary.
Salary increase after MBA
This is an approximate and conservative estimate as salaries may increase year-on-year.
| Period | Salary increase (USD) | Salary increase (INR) |
|---|---|---|
| Year 1 | $90,000 – $190,000 | ₹80 lakhs to ₹1.7 crores |
| In a 3-year period | $270,000 – $570,000 | ₹2.4 crores to ₹5.1 crores |
| In a 5-year period | $450,000 – $950,000 | ₹4 crores to ₹8.5 crores |
That’s a whopping salary rise of ₹2.4 to ₹5.1 crores in 3 years and up to ₹8.5 crores in a 5 year period. This uplift happens only if you get into the right MBA program.
And that’s where the MBA admissions consultant’s real value lies – not in grammar and spelling checks, but in shaping the trajectory and pace of your career and income growth.
Where does the MBA consultant fee fit in?
Let’s stack all the earlier numbers side by side to get a better idea.
Component
| Typical Cost (USD)
| Typical Cost (INR)
| |
| Pre-admission process (tests, apps, consultant) | $8,000 – $9,000 | ₹7 lakhs – 8 lakhs |
| Cost of attendance | $80,000 – $210,000 | ₹70 lakhs – ₹1.9 crores |
| Post-MBA salary uplift (Year 1) | $90,000 – $190,000 | ₹80 lakhs to ₹1.7 crores |
| Post-MBA career uplift (5 years) | $450,000 – $950,000 | ₹4 crores to ₹8.5 crores |
| If awarded partial/full scholarship | $20,000 – $100,000+ | ₹20 lakhs – 90 lakhs |
If you observe, you’ll realize that the consulting fee is only a small fraction of the total MBA expenses, but the impact is huge on the outcome.
But as we discussed earlier, ROI isn’t just about money. It’s also about the non-monetary benefits. An experienced MBA consultant brings to the table years of expertise in helping candidates with diverse profiles. They can help refine your strategy, bring more clarity and polish that can help your MBA application stand out.
Here are some additional benefits of hiring a consultant:
- Lesser time lost in trial and error experiments
- 50 – 80 hours saved on essays/revisions
- Better clarity around the career goals
- More confidence during interviews
- Better school fit translating into superior MBA experience & better internship/job outcomes
- Reputed school with higher post-MBA salary
- Greater chances of scholarships
- Reduced re-application stress & expenses
- Lower risk of wasting a year
If you take into account these aspects, the ROI shoots up.
So coming back to the original question – ‘Is a premium consultant worth it?’
If you consider the consultant fee in absolute terms and ask whether it’s really required, the answer is No. Unlike the application fee or tuition, admissions consulting is not a mandatory expense. And neither is test prep for GMAT / GRE, but a significant number of test takers see tremendous value in getting formal support.
Admissions consulting is one of the few costs that directly influences whether all the large benefits materialise. So yes, it can definitely be a high-leverage investment.
Think of a premium admissions consultant as a risk-reduction option and ROI enhancer. Across almost any successful scenario (whether it’s admit alone, or with scholarship), the consulting fee becomes negligible in the larger economics of the MBA journey.
If you’re looking at the big picture the way business schools expect you to, the math speaks for itself.
MBA Crystal Ball is considered among the top in the elite admissions consulting space, with thousands of success stories since 2010. Reach out for help: info@mbacrystalball.com
Image: Andre Taissin (Unsplash)
