Where Your $250 GMAT Fee Goes
Hey guys, it’s Jessica.
So let me fill you in on a quick history lesson of the GMAT.
So you’re probably sitting there thinking: I just paid (or are about to pay) $250 to take the GMAT exam.
Where the heck does this money go?
Are they making money off of my test fees?
Well, the answer is no.
The entity you pay money to is the Graduate Management Admission Council (GMAT), which is an international non-profit association of business schools that “do business” with business schools and institutions.
Basically this is what happened. In 1953, a group off 9 business schools got together and said they were getting applications from people so diverse it was difficult to assess which ones were quality and which ones weren’t. So they put together a standardized test that was initially known as the Admission Test for Graduate Study in Business (ATGSB).
The ATGSB basically went around to business schools and academic institutions throughout the world and said:
“Hey…we got this test called the ATGSB that we think will help you assess MBA applicants. How about this..you give us money and we’ll test your students for you and send you their scores. We’ll even give you lots of fancy statistics including mean, median, standard deviation, and everything else.”
And so a (non-profit) partnership was formed. Pretty interesting, huh.
So your fees go to this organization that makes up test questions and develops a database to track all the statistical characteristics of each question based on how test takers answer them. The new questions they create are randomly used as “experimental” questions that you see on your test.
The ATGSB was later renamed the Graduate Management Admission Test (GMAT) in 1976. At first only 2000 people took the test each year way back in 1953. But now about 250,000 people take the test annually.
So there you go. A quick history lesson on the GMAT.
The GMAC recently released data on the different test takers categorized by age group. Take a look where you fit in and who your competition is. Notice the growth rate of test takers under the age of 24 is higher than that of the other age groups.
Director of Operations
GMAT Pill Study Method
P.S. But wait, do you understand how big that number is that I mentioned? That’s 250,000 COMPETITORS that are taking the same test you are about to take! With so many people taking the exam and everybody doing SOMETHING just to stay competitive with the guy next door who is paying thousands for a private tutor, it’s probably NOT a good idea to try to wing the test out on your own.
P.P.S. Remember, hiring private tutors and doing prep courses might not be worth the money for most people. Students who used to pay by the hour for Zeke’s private tutoring now exclusively use the online study method. More value and lower price. You can too!
Sign up here: http://www.gmatpill.com/amember/signup.php