The True Value of an Online MBA Degree

Deciding Whether to Get an Online MBA?

You've decided it's time to enhance your business career and get your MBA. An online MBA makes the most sense for your already packed schedule, but will the quality be equivalent to a traditional MBA? Do online MBAs make a difference to employers?

Changes in the Marketplace

Ten years ago, an MBA was hands down, the most important degree to have in business. Today, critics argue that with so many MBAs on the market, the degree doesn't have the same value it had in years prior. Others argue that if your MBA isn't from Wharton, Harvard or Stanford, it isn't worth your time and money.

However recent studies show that MBAs still have cache in the marketplace. A study by executive search firm Spencer Stuart found that the percentage of CEOs at Fortune 500 companies who were educated at Ivy League schools declined from 16% in 1998 to 11% in 2004. The percentage of CEOs with undergraduate degrees from public colleges and universities shot up from 32% in 1980 to 48% in 2001.

MBAs Still Earn Higher Salaries

At executive levels, work credentials speak for themselves. But for those who are early-to-mid career, an MBA can definitely tip the scales. In 2002, the median full-time MBA student earned $50,000 before obtaining an MBA, according to The Graduate Management Admission Council's "The 2003 Global MBA Graduate Study." Immediately after completing the MBA program, that same student expected to earn $75,000, excluding signing bonus.

Yes, this means online MBAs too. "Once I finished my online MBA with the University of Phoenix, I received a 6% raise," shared Alanna Vitucci, who at the time worked for Philips Petroleum Company. "And within 6 months of graduation I had landed a promotion and a 50% raise working for American Express. My MBA allowed me to competitively position myself," she added.

According to Capella University, 67% of their Online MBA alumni reported that they advanced in their career or profession and 63% reported salary increases since earning their MBA.

Not All Online MBAs are Created Equal

There are nearly 150 accredited online MBA programs available on the market currently. Make sure you carefully evaluate each school and program. Visit the school, talk to the professors, talk to recent graduates and current students. Learn about their education delivery format. Use the Internet to research the schools' character. Reputation matters, but you'll pay for it. Duke University's acclaimed Global Executive MBA program costs participants over $100,000.

Bottom line, it's imperative that you earn your MBA from a school that is accredited. The top distance learning programs will be accredited regionally and accredited by the Association to Advance Collegiate Schools of Business (AACSB), which includes online MBA programs from University of Michigan, Texas A & M University, Florida State University, University of Colorado and University of Massachusetts - Amherst.