If you have decided the read this post, then you are already debating the merits of a GMAT classroom course.  While I (and the world’s largest team of GMAT experts) helped build Kaplan’s new GMAT Experience, this post is NOT limited to why you should take “Kaplan”.  This post is about the benefits of a classroom course (any of them) versus non-classroom courses.  Additionally, this isn’t a post about preparing for the GMAT or not preparing for the GMAT – the test is too important to just ‘wing it’ – you’ll be paying for that decision for the rest of your life.

In order to outline the different value drivers of Self Study vs. Class Study, I’m going to explore the common responses to paying over $1,000 for a structured study program.

“I can learn this from a book.”

A book from a book store is an effective tool to learn GMAT content.  (WHAT?!  I thought you were going to spend the entire 600 words talking about why books are bad!)  No, actually, GMAT books do a good job of outlining the relevant content and providing context and details – I strongly encourage you to go to your local bookstore and page through one (especially at the coffee shop – since you don’t have to pay for the book and can still get all the good stuff out of it!).  However (and I hope you have gathered this concept from following my postings over the past few months) the content is not incredibly difficult.  If the content isn’t that difficult, why is the test so hard?  Well, the test makers are geniuses – they know how to push the bounds of simply algebra, number properties, etc.  To study effectively, you need to drill yourself constantly.

A classroom courses is a combination of content and application.  In the new Kaplan Course for example, we simplify the content for the students who want to learn the basic parts of the test and we implement the content from a GMAT point of view against some of the hardest questions the GMAT can come up with.  For us, it is the combination of Theory and Practice that makes a course so much more effective for learning the nuances of the test and achieving your target score.  Additionally, in a classroom course you have the immense benefit of both a live teacher, and other students’ questions and insights.  You can’t ask a book questions!

“I don’t have the time.”

Generally, I’m going to say this is probably the weakest reason why individuals do not effectively prepare for the GMAT.  While you may have a particular path you are trying to follow (graduate undergrad, work two years, apply to business school, get married, have kids, make partner, etc), the timing for the GMAT is a self imposed deadline.  Make the time.  Business Week research shows that increasing your GMAT score increases your salary after business school graduation.  (They don’t claim causality, a common GMAT mistakes, BW only claims correlation).   Think about it – you really don’t have the time to maximize your score / salary potential?

“I don’t have the money.”

If you are looking for a good excuse for not taking the course, this is probably the one with which you agree.  Just like college courses, these courses have high costs: teachers, curriculum, location, books, interactive tools, support services, etc. – there is a reason the courses are expensive.

However, let’s look at a comparison of the cost of the course.  The average quality GMAT course costs about $1,500.

Let’s put that in perspective:

–Two years of business school tuition - $80,000
–Two years of living expenses and incidentals - $50,000 (personally, I would be a lot higher)
–Two years of lost wages - $150,000

These three components are expensive!  Primarily, many GMAT test takers fail to account for the forgone wages – the average salary of an individual entering business school is $80,000 a year!  Forgone wages is a HUGE consideration.  Going to business school will put you behind by one quarter of a million dollars!  The cost of the Kaplan GMAT program is 0.5% of that cost.  In other words, do you want to risk a mediocre score just for 0.5% percent of the total cost of business school?

And consider what effect that $1500 could potentially have on your future earning potential.  Just glance down the US News MBA rankings list to see the correlation between higher GMAT scores and higher-ranked MBA programs, and on the same rankings list, the correlation between higher-ranked programs and higher starting salaries.  Think of your course fee as an investment now that should generate strong returns later in life as it helps you get into a better program, and get a better job with a higher salary in the future.

Value and Cost.  These are concepts business school will drill you on.  There is a difference.  The difference is important.

Ok.  I hope this helped.  Making a big purchase decision like this is difficult.  However, make sure you make the most informed decision you can.  I took a Kaplan course for my GMAT preparation – I couldn’t have jumped as high on my real score if I left such an important component of my application to a book.

For many GMAT test-takers, the biggest challenge in GMAT practice isn’t Data Sufficiency, Sentence Correction, or permutations, but rather finding the time to practice at all.  On average, the 700+ scorer prepares for about 100 hours for the exam, and finding those hours can seem impossible when you’re trying to keep your job, get promoted, avoid swine flu, and maybe even have a life.

Recently I coached a few of my students at one of Kaplan’s premiere corporate partners on this issue.  My advice: the Punchcard Method.

The time card is an obsolete technology for the average b-school applicant (aged late twenties, on average, for a male, and a couple years younger for a female).  In decades past, you used to enter your time card in a machine that clocked how many hours you worked.

If you were showing up, but not contributing to work much beyond that, people said you were just “punching the card.”  Doesn’t sound like a killer GMAT study strategy, does it?  Nevertheless, if you’re having trouble finding time to practice, it’s exactly what I recommend.

Just punch the card.  “Show up” to your GMAT practice, every day, even if that’s all you do.  Make sure you practice at least one question, or spend at least five pages reviewing one proven test strategy, every day.  Don’t worry about how long you study for, as long as you punch the card.

The punchcard method is like having a workout routine that doesn’t focus on how many miles you run or how many hours you’re in the gym; it’s just focused on how many days you actually bother lacing up your sneakers.  (And it’s a pretty good way to stay in shape.)

Imagine a calendar hanging on the wall.  An X marks every day, meaning you punched the card and studied at least a little GMAT.

What you’ll find, when you adhere to the punchcard method, is that some days you will study only five minutes.  But you’ll end up practicing a lot more, and worrying less about time management.

Over the years, GMAT instructors will tell you that they hear common refrains from our students and friends.  As I think about the past years of teaching, I have compiled a list of three of the most common pitfalls my students at Kaplan and personal friends have experienced while they are prepping for the GMAT.

Pitfall 1:  Studying Only GMAC Material

Kaplan loves the GMAC.  We believe that they do an excellent job of creating consistent, unambiguous, and challenging GMATs year after year.  However, as we review the books published by the GMAC, I’m concerned that the questions (while past GMAT questions) don’t reflect the truly difficult questions that students will encounter on Test Day.  The book is a must read (Kaplan actually buys our students a copy!);  however, if a student only uses the Official Guide as preparation for the test, the student will likely not experience the questions that result in a truly high score.

Pitfall 2:  Focusing on GMAT Content (at the Expense of Everything Else)

GMAT content is imperative to learn, memorize, and understand.  Some individuals have even gone so far as to make flashcards of the content areas.  (Area of Triangle = ½ bh, circumference of a circle: 2pr, etc.)  These equations are important but they won’t translate into points on test day.  Why? You MUST make them actionable!  The equation for the area of triangle is only important when you know that you have to use the formula to find the answer to the GMAT question.  The GMAT isn’t testing your ability to memorize formulas – they are testing your ability to identity the moment and situation when you have to USE the equation.  In order to practice this, take full-length Computer Adaptive Tests and quizzes.

Pitfall 3:  Thinking a Book will Solve It

It won’t.  Many individuals prepare very well by using a book.  However, it isn’t the book that causes their success – it is their diligence.  A book is a collection of questions and information on content.  You have to take this knowledge and apply it to a real GMAT CAT Test.  Studying with a book will get an extra 20 or 40 points on test day.  However, like everything in business, you get what you pay for.  Be careful not to put too much stock in a book.