How much should you pay for a banking careers coach? Not a kidney, maybe an eyeball
Some students will do anything to get a job in investment banking – including paying out the approximate cost of a human kidney.
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Chinese international students have reportedly been forking out vast sums of money in their quest for employability in the American financial sector. Bloomberg says that one young woman paid $50k - the cost of a kidney - to secure herself an interview with hedge fund Bridgewater, as well as access to a network that could make internal referrals at major investment banks such as Goldman Sachs and Morgan Stanley.
But is a careers coach ever worth $50k? Even the coaches themselves admit that the answer is, probably not.
Although some careers coaches charge a percentage of first year pay as a fee, most expect you to pay upfront. Roy Cohen, a Wall Street career coach and author of The Wall Street Professional’s Survival Guide, says coaching services that cost $50k are a scam.
“When you sign up with a program like that, you can't, you can't exit,” he explains. “They have your money, and they can’t offer you a significant refund because they will front load the fee and claim that most of the fee has already been devoted to the early work that they've done with you.”
A good careers coach can be expensive, but not $50k expensive. Cohen, for example, charges $400 per hour regardless of who you are – and his roster as a coach stretches from students trying to get into the finance industry to senior executives.
Other careers coaches, such as Sam Shiah and his Wall Street Mastermind (WSMM) program, charge between $5k and $10k. The variation comes depending on how much specific attention a student might need. City CV, a UK-based coaching firm run by Victoria McLean, offers 4-, 8-, and 12-hour packages for students, with each costing around £210 ($275) per hour. McLean recommends the 8- or 12-hour packages to make a difference.
For US students – and especially MBA students – this makes sense. A four-year education in the US can cost up to $350k, with $80k a year tuition pretty standard among top universities. An MBA is an additional $200k+ on top of that. Adding another $10k on top of that for careers coaching is insignificant by comparison.
Over the long term, paying a careers coach can be an efficient return on investment. The median US graduate earns around $78k, according to the US Bureau of Labour Statistics. A first year associate in a bank earns around $200k on Wall Street, and by the time you finish your first year as a VP, you will have out-earned the average US graduate by something in the range of a million dollars.
Banking careers coaches themselves say they're worthwhile. McLean claims a success rate close to 100%. “I can’t think of anyone that hasn’t secured their role following the coaching,” she reflects. Shiah claims a ~90% success rate at placing candidates, with 44% going to bulge bracket banks or elite boutiques.
Only Cohen is more modest. “Just seeking out and working with a career coach doesn’t guarantee job search success,” he says. “Wall Street jobs are extremely competitive, and if you can’t support why you’re a great candidate, it might not be the right option for you.”
The support you get from a banking careers coach increases with the fee you pay. Shiah says companies charging $50k will, “have a banker meet with you for 50 or 60 hours." However, for a more moderate sum, Shiah himself teaches technical questions via video, helps you overcome social awkwardness and operates a Slack channel where students can ask experts to clarify things.
What you’re really paying for is access to former recruiters, and people who were part of the interview-crafting process, says McLean. “There's a lot of strategy behind an interview,” McLean says. Bankers don't know this strategy: “They don’t have the experience in coaching [interviews].”
McLean operates a four-stage preparation policy: in the first instance, students are interviewed as to their desired industry (those who are dead set on banking skip this stage). In the second, their CV and social media presence are given a glow-up. In the third, suitable firms to apply to are identified. And in the fourth, interview preparation is taught.
Is it worth it? That’s your decision to make - not ours. If you’re having any doubts whatsoever about getting into finance, paying the cost of a kidney – or even an eyeball - might not be worth it. But either way, you’re probably best off starting with our student and graduate guide.
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