For development, we pay a summer stipend or release faculty from teaching a course. Pay faculty members on the basis of per-student taught. Pay summer salary for course development and to compensate for extra teaching. Use the revenues from new students taught to add new lines to department so more courses can be taught within the onload course loads. Build-up of campus teaching support infrastructure so that it is easier to teach online.
Policies are flexible and are governed by the various policies of the college, schools, etc.
A great deal of variety exists in the approach taken by the instructional units which have demonstrated ingenuity and resourcefulness in addressing their needs and situations. We've grappled with this and the decision was generally not to offer any special extra compensation for course development beyond what would normally be provided. If, however, there were several sections of a large course offered, then perhaps the most computer-adept faculty in the department might receive release time to develop materials in support of that course. Faculty stipends are available for course development. For web-delivered courses, one overload hour stipend for each credit hour will be paid upon the satisfactory completion of the course.