Is USC’s Online MBA Worth it? (8 Things You Need to Know)

Considering an Online MBA, but not sure it’s worth the time, effort, and money?

Furthermore, with so many Master of Business Administration (MBA) programs to choose from including Executive MBA, Part-time MBA, and Full-time MBA… is an Online MBA the best choice? 

As a recent graduate from the University of Southern California’s (USC) Online MBA Program, I share the 8 things you need to consider, including an in-depth return-on-investment analysis, to decide whether or not an online MBA was worth it. Spoiler Alert: Yes, an online MBA is worth it.

Online Learning – Pros and Cons

Pros

Online learning is the Future

In college, I laughed at my engineering buddy who told me that if he didn’t have a girlfriend by his mid-twenties, he would scour the internet to find one. 

This was back in 2008 when the only major players in online dating were Match.com and eHarmony.

There was a TON of social stigma surrounding online dating back then. I don’t think anyone thought online dating would take over the world less than a decade later, with more relationships starting on dating apps like Tinder, OKCupid, and Coffee Meets Bagel year after year. 

A similar phenomenon has been happening in the online education space as well. When I started my Online MBA program, I was afraid that there would be stigma around online learning. As a matter of fact, I made sure in advance that the program I enrolled in would not state “Online” on my diploma!

But the unfortunate spread of COVID has only accelerated the pace of remote learning, as students from all over the world are logging into Zoom and Webex to attend classes.

Online education is not going anywhere, and if current trends persist, it will only be more widespread and less stigmatized. 

When I interviewed for my promotion, my employer knew that I was in the middle of my USC Online MBA program and hired me anyway. Any fears that your degree will be frowned upon, or that your employer thinks that an Online MBA is fake or not as good as a residential program, are largely unfounded, at least in my opinion.

Save on Commuting

Another great thing about doing an online MBA is…

NO COMMUTING!!!

After my day job, I would just come straight home and hop onto Zoom to attend classes at night. I didn’t need to drive anywhere out of the way or cross any bridges to get to a physical campus after work.  

That not only saved me precious time, but also money.

Cons

Online Learning isn’t all sunshine and rainbows.

With online learning, you’re not going to be grabbing dinner with your classmates after class.

There will be fewer social opportunities unless you really put in an extraordinary amount of effort to meet up in person.

You’ll make friends and develop relationships with your classmates online… but at the same depth as you would with in-person learning? In my opinion, the answer is no, but I’m sure it’s debatable.

Credentials and Confidence

As a first-line supervisor, I wanted to take the next step in my career.

I wanted to make sure that I had the credentials and most importantly the confidence to get to the next level.

In my opinion, an MBA shows employers that you:

• Have what it takes to get into a selective program
• Have what it takes to endure and finish the coursework
• Have an interest in building your leadership skills
• Have intermediate level knowledge of established business practices, finance, statistics, communication, and much more
• Take education and learning seriously

Half-way through the USC online MBA program, with my newfound confidence, I applied for and successfully landed a Program Manager position, one that I felt I would have been unprepared for if I didn’t have my masters.

The degree, though not yet bestowed upon me at that point, certainly gave me the confidence to apply my newfound skills immediately. 

Furthermore, the steep tuition put pressure on me to get a promotion quickly to justify paying the price!

Not only did it benefit me in the short term, but I feel that future me will also (hopefully) benefit from future job opportunities.

Knowledge

The market for engineering jobs was hot in college, so I studied mechanical engineering for my undergrad. But my second choice definitely would have been business.

I was always interested in business and finance and so naturally I wanted to learn more.

My USC online MBA program consisted of a one-week residential session and 5 semesters. 

The coursework was scheduled as follows:

I learned an incredible amount about various topics including business strategies, heuristics and biases, predictive analytics, not to mention how to navigate financial reports, how to calculate key metrics, and valuable business skills that I can take with me, no matter where I end up.

Classmates

Our first week residential was a great way to meet all of our classmates in person, learn about different industries that people work in, and connect via a meal or a beer. 

After the residential week we all moved back to our hometowns, and all of the instruction moved online. Only a handful of classmates in my cohort live in the bay area where I live, but we met up several times for a meal during the school year and between semesters which was great. 

As a natural introvert, along with my busy schedule, and the busy schedule of my classmates, it was tough to make long lasting friendships. But I know that in a heartbeat, I could certainly reach out to my classmates for advice.

It is what you put into it.

Opportunity Cost

The great thing about an online MBA for me was that there is essentially ZERO financial job-related opportunity cost.

With a full-time on campus program, you will most likely have to quit your job and forego two or three years’ worth of wages! This can be a substantial opportunity cost, and certainly would have been in my case.

With my online MBA, I was still able to work full-time while attending online classes at night.

Although there is no job-related financial opportunity cost, there certainly was a cost to my freedom. When I was attending class or doing homework all throughout the week, it became difficult to make time for family and friend activities. 

Fortunately, I was able to manage my time strategically to not miss the major get-togethers. But I also sacrificed a lot of free time and picked up a fair amount of stress while working through the program.

MBA School Selection

If you are serious about doing an MBA, I highly suggest that you conduct a detailed analysis on all of your potential choices and screen them through criteria that fits your purpose. 

There were several things that I believed to be important when selecting a school:

1. Is the program well-known (aka prestigious/selective)?
2. Does it have a part-time program?
3. How long is the program?
4. How much does the program cost?

To measure prestige and selectiveness, I compared both U.S News undergrad rankings, and U.S. News MBA rankings. I also reviewed posts on Poets and Quants.

Before I started my program in 2018, I conducted a comparison of different MBA programs in California:

As I was considering an MBA, I knew that because of the opportunity cost of foregone wages, I would only focus on part-time programs and online MBA programs.

In my comparison, I discovered that USC’s online MBA program could be completed in 21 months, nearly half the time it takes to complete a residential part-time program at Berkeley or UCLA. Stanford didn’t even have a part-time program at the time of my research.

The cost listed in my comparison reflects USC’s online MBA cost, which was listed at $105,542 in 2018.

I also compared just the top online MBA schools according to U.S. News in 2018:

The only California program rated in the top 8 online MBA schools according to U.S. News in 2018 was USC’s online MBA program. 

Though pricey, it boasted a shorter than average completion time, and high undergrad and full-time MBA rankings. Furthermore, since I wanted to continue living and working in California, my hypothesis was that employers would be more impressed that I attended a well-known school in California, rather than one from out-of-state.

Job Transitions

Many people seek out MBA programs to advance their careers. Most of my classmates were unsurprisingly ambitious, looking to build their skills, move up the ladder, transition into new fields, or start new businesses.

I finished the program with a cohort of 46 people (including myself).

In the most unscientific study, I looked at the Linkedin profiles of 43 of my classmates (3 were not listed).

Of my 43 classmates, 25 had a job transition during the program, 2 had a job transition within 3 months of graduation, and 16 listed no change.

Caveats:

• Can each of these job transitions be attributed to the MBA program? Absolutely not. It is very difficult to tell if a transition was directly attributed to the MBA. 
• I conducted my unscientific study 3 months after graduation. More people could be transitioning in the coming months.
• LinkedIn does not provide salary data. A job transition does not necessarily mean a promotion that includes a pay raise.
• Accuracy is dependent on user self-reported data on LinkedIn.

With the caveats in mind, the fact that many of my classmates transitioned jobs during their time in the program should be an encouraging sign that the pursuit of the degree has value.

Online MBA Return on Investment (ROI)

No analysis would be complete without answering, is an online MBA worth it financially?

In order to do this, I conducted a Return on Investment (ROI) analysis by comparing the expected Net Present Value (NPV) of the raise I received (which I accredit to getting my MBA and landing the promotion) and the cost of tuition.

My assumptions were:

Is An Online MBA Worth it?

The value of an Online MBA depends on what you get out of it. For me, an online MBA was absolutely was worth it.

The stigma of online learning is quickly fading with the momentum drifting towards more online learning.

The confidence I gained from my MBA, pushed me to apply for a promotion I otherwise was not prepared for.

I learned new things, made new friends, and did not have to pay the opportunity cost of quitting my job.

The price of the degree was steep, but produced a welcome Return on Investment that brings me closer to financial freedom.

Will an Online MBA be Worth it for you?

As you ponder whether or not an Online MBA is worth it for you, I suggest you really think about what truly matters to you.

• Are you looking for a job transition or promotion?
• Do you value in-person learning and sitting in a physical classroom?
• What’s the path for advancing without an MBA?
• Would you quit your job for 2-3 years to pursue a degree?
• What factors do you value most? Cost? Prestige? In-person relationships? Networking?
• What are your options?

I suggest you sit down and evaluate ALL of your options, including NOT getting an MBA, before you make your decision.

Before you spend tens of thousands, or close to a hundred thousand dollars for a degree, you have to do your homework!

And if you enroll in a program, just know that you’ll have to do even more homework!!

Shout out to Cohort 7!! ✌🏼

Let me know you thoughts below!

Have you thought about getting an Online MBA? What factors are most important to you?

Disclaimer:

The beliefs in the article are my own personal opinion. I was not asked to write this article by USC. I am not being compensated by USC for this article. This article is not used for the purposes of promoting USC or disparaging other universities or programs. The statistics presented in this article were based on my own research at the time. Although I endeavored to provide accurate information, the information has not been confirmed by audit, and I will not be held liable for the accuracy of these statistics. It is important that you conduct your own research. Results are not typical.