Teacher education struggles with the challenge of preparing and retaining high-quality teachers who can work effectively with all students. While educator preparation is a strong correlate of student achievement, traditional university-based programmes are not available to all potential teachers. This manuscript describes CalStateTEACH, an online teaching credential programme operated by the California State University system, and reports data on its efficacy as compared to traditional, campus-based programmes. The independent variable was the pathway used by each teacher, and the dependent variables were the ratings of preparation by programme graduates at the end of their first year of professional teaching and those of their employment supervisors. Mean ratings by CalStateTEACH graduates were significantly higher on 16 of the 17 scales. There were differences in supervisor ratings but none was significant. Results add to the knowledge base of effective e-learning in higher education and suggestions for practice are presented.