During the past five years the authors built a sizeable online program in the Psychology Department at the University of Minnesota Duluth. During that time they learned a great deal about how to administer such a program. Their experience also led to a proposal for creating an infrastructure to support online programming in a traditional university. The authors' program began in 2000 with 4 courses (100 students) and grew to 18 courses (1,200 students) by 2005, with tuition revenue of $790,000. To put that into perspective, the total online revenue for 2003 for the University of Minnesota's other three campuses, Twin Cities, Morris, and Crookston, was just over $800,000. During the 2004-2005 academic year, the authors' program reached its enrollment capacity, as measured by their ability to effectively administer it at the department level. They lobbied the administration to develop a university-wide online program of which their program would then become a part, but the authors failed to convince the administration of the value of online education at the institutional level. In this article, the authors describe the development of their program and the four major challenges they faced. The online education model they outline in this article combines several guiding principles while addressing the four challenges. The model preserves the values found in the traditional university yet integrates some innovative ideas drawn from for-profit colleges.