Online MBA versus traditional MBA: Here are 5 major differences

What’s different is that most business leaders of today attended school decades ago, when there were less avenues for difference when it came to program format and specialization. Most business schools across levels of prestige now offer many ways to learn—whether that be online or in-person, or even a combination of the two.

Online education has steadily risen in popularity since as early as 2013. During the 2013–14 school year, about 31% of graduate students took distance education (a.k.a. online) courses, and as of the 2018–19 academic year, the number of students taking online classes increased by 22.5% to over 1.7 million students, according to the most recent federal data. While the COVID-19 pandemic used in a boost to online learning, its popularity has certainly stayed around.

While online programs allow for more flexibility in students’ schedules, full-time programs offer students more personalized coursework and the opportunity to take full advantage of internships, networking, and other career resources. 

Weighing the opportunity cost of quitting a job and forgoing a salary to enroll in the traditional, in-person MBA program against the option of maintaining employment while completing a 16- to 24-month online program is a difficult decision for some prospective students. 

Here are the five areas of major distinction when it comes to deciding between traditional, in-person MBAs and online programs:

1. Cost
2. Learning pace
3. Networking
4. Curriculum
5. Admission requirements

Cost

In-person programs are generally more costly in terms of tuition as well as other expenses like travel and campus amenities. In some instances, a traditional program can be close to double the price of an online program. For example, for out-of-state students attending Indiana University (Kelley)’s traditional MBA, the cost of attendance is $81,400 per year, totaling to about $162,800. In comparison, its online MBA, Kelley Direct, is estimated at $94,944 total.

While Harvard Business School does not have an online MBA program, the estimated cost of attendance for the 2024-25 school year is $118,854.

Learning pace

MBA students, no matter the format, often come to the program with at least a few years of work experience. As family obligations turn up—whether that be children, aging parents, or a simple need to continue to work while studying—flexibility becomes paramount. In general, online MBAs cater best to this subset of students as the coursework may be part-time or even asynchronous.

Network

Networking is core to the success of any business education; the people you meet can play unexpected roles in the short and long term aspects of one’s career. When it comes to the MBA experience, networking is one of the reasons many people enroll in the first place. While it true that networking with peers, professors, and community members can occur online, many will argue it will never beat the in-person experience.

Curriculum

When it comes to program content, traditional and online MBA programs are generally very similar. While some schools may have some faculty dedicated to one program versus the other, many programs utilize the same

What may differ is the elective specializations and concentrations students may take. Because traditional MBAs are more historic, online programs may have less developed opportunities, but this, again, may differ school-to-school.

Admissions requirements

Traditional, in-person MBAs tend to be competitive due to only a select number of classroom seats and professors being available. In fact, many of the top, M7 business schools do not offer online programs, adding to the selectiveness of their student population. The traditional programs, therefore, have more complicated admissions requirements and are more likely to require, or have less inclusive waivers for, GMAT/GRE scores. Online programs, on the other hands, may accept more students simply because more students can join their virtual classrooms without having to worry about physical space limitations.

Comparing the top traditional and online MBA programs

The pros and cons of a traditional, in-person MBA

The pros and cons of an online MBA

Online MBA programs: Tailored to experienced working professionals

The average work experience of applicants to top online MBA programs is between six and 10 years, whereas the average falls between three and five years for full-time programs, according to several business school administrators. 

Online MBA courses are designed with the expectation that most students will have a higher baseline of knowledge coming into the program. Also, because of the flexible schedule of the online MBA, many students continue working in the business world while they are completing their courses.

Online students are able to finish coursework at their own pace each quarter or semester, which means they could complete an MBA at the “full-time” pace or extend their timeline to three years or beyond. Meanwhile, full-time students usually adhere to a more typical nine-to-five schedule for classes and complete the degree in about two years. 

Saby Mitra, dean of the University of Florida Warrington College of Business, says the online schedule is best for people who intend to continue working in their same field post-MBA.

“If you want to make faster strides in the career that you have, then an online MBA makes much more sense,” Mitra says. “You don’t have to take off from work. You don’t have the added expense of being in school for two years. You’re still earning your salary. It’s much more convenient.”

Online programs remove common financial and geographic barriers to enrollment that the traditional MBA education maintains. Therefore, online MBAs have also seen a trend in more diverse classes—including higher numbers of women and underrepresented minorities—over the past several years as online programs have become more widely accepted. 

“In general, most online MBAs would tend to see more diversity, and that makes it more attractive for the companies to recruit because they are looking for diversity as well,” Mitra says. “They are more likely to find that diversity in the online MBA pool than in the full-time MBA.”

Full-time MBA programs: Best for people who are switching careers 

As more schools offer the opportunity to pursue an MBA without requiring students to commit to a full-time and in-person education, students are forced to consider whether they actually need to pull out of the workforce to do so.

The people who benefit most from a full-time MBA education are those who want to shift from a different career into business, according to Bradley Staats, senior associate dean for strategy and academics at the University of North Carolina at Chapel Hill. 

“I’ve worked in marketing. I’ve decided I want to work in finance. But how do I make that pivot? If I’m in a brand management job, that’s really tough to do,” Staats says. “If I go to business school I get the training. I spend my summer internship at a finance job, then I can make that jump.”

John Gresley, assistant dean and director of Warrington MBA programs, says that full-time programs offer students more opportunity to adapt the courses they take to what they need to learn. 

“You get a little bit more course selection, a little bit more opportunity to kind of pick and choose your experience in the full-time space,” Gresley says. “But you are locked into having to do it Monday through Thursday. You’ve got to live in Gainesville. You give up a lot of things for that customization.”

Full-time students trade off schedule and location flexibility for degree customization. Still, Gresley, Staats, and Mitra note that the overall content of online and full-time programs is the same.

Is standardized testing required for online MBA admissions?

Whether you are applying to an online or full-time program, every admissions office wants a holistic view of you as an applicant. This typically involves at least one essay, a résumé, undergraduate transcripts, and two recommendations. 

However, Staats says that standardized test scores for either the GMAT or GRE are less likely to impact the standing of online applicants. In fact, for the fall of 2023 entrants to the UNC Kenan-Flagler Business School’s only five entrants ending up providing a GMAT and/or GRE score since submission is not required for those with five or more years of professional full-time work experience.

“Since they typically have a greater wealth of experience, we can view what they’ve done, and they’ve shown that they have this ability without needing to go and take the GMAT,” Staats says. 

Moreover, many schools offer test waivers if applicants meet certain criteria. Typically, waivers may be granted on account of other earned graduate degrees, significant work experience, or more occasionally a high undergraduate GPA. During the COVID-19 pandemic, however, many schools recognized standardized tests as an additional burden on students and were more lenient with waivers, according to Staats. And that’s a trend experts say they expect will continue. 

How do starting salaries compare of MBA program formats?

Because many online MBA students work while completing their degrees, they don’t typically move directly into a new job upon graduation. Instead, online graduates look to increase their salaries through promotions afforded them through their MBA. 

Most full-time MBA graduates, however, are seeking new jobs with distinct starting salaries, which allows potential students to judge the value of a degree from one business school versus another. Nonetheless, the percentage increase in salary is typically greater for full-time program graduates. 

“You start to see the economics play out that you can keep your job,” Warrington assistant dean Gresley says. “You can still earn roughly the same amount if you put in the time and the effort with the classes and the career search. But you also get those two years of economic benefit of having worked instead of not worked while you went through the program, which offsets that $1,500 pretty easily when you look in the grand scheme of things.”

Do online MBA programs require internships?

Many full-time MBA programs, including those at UNC and Florida, encourage and sometimes require students to participate in summer internships between their first and second year. While online students may seek out internships, Mitra says most of these programs don’t emphasize the experience as much. 

“You likely have an existing career in what you want,” he says. “Therefore, you don’t need that internship to make your entry into those new areas.” 

Still, resources like career service centers are available to online students in the same capacity as full-time students. 

Additionally, though online students don’t have the same experience as full-time students when it comes to networking among classmates, some schools implement occasional, required events in person. For example, at UNC, Staats notes, the online program includes quarterly immersions where students are expected to meet in person for three-day weekends “that involve networking coaching, as well as academic content and career development opportunities.”

While these events have not occurred during the pandemic, Staats says he expects them to continue afterward.

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Frequently asked questions

Is an online MBA as good as an in-person MBA?

The best MBA format depends on your goals. If learning is the main priority, and you need a flexible experience, then online is better. If networking is top must, then an in-person program may be better. In terms of curriculum itself, they are typically in equal standing.

Is an online MBA taken seriously?

Yes, most employers ultimately do not care about the format of your MBA degree—what matters is what you put in and put out of the program. The curriculum is oftentimes just as rigorous as the in-person program.

What is the easiest MBA to get?

The easiest MBA depends heavily on your preferred learning style. If you enjoy flexibility and can learn all day from a computer, then an online MBA may be the right path. If you prefer the in-person campus experience, then a traditional MBA is a great route.

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