This paper focuses on using monetary incentives to increase overall response and Internet response when mail and Internet choices are offered. Previous research has indicated that offering an Internet option does not increase total response rates for mail out questionnaires, but that methods can increase Internet response over mail response. Internet questionnaires can reduce non-sampling error in surveys by automating skip patterns, as well as providing edit and range checks. Additionally, Internet surveys provide data processing advantages including faster turn around times and lower processing cost. Given the advantages of an Internet administration, Census and NCES wanted to encourage Internet response for the 2004-05 Teacher Follow-up Survey (TFS). At the same time, incentives were offered to increase response. An experiment designed to assess the impact of incentives on overall response and on Internet response was embedded into administration of the TFS. The experiment looked at 3 different Internet treatments: 1) initially providing only the internet option, 2) providing the Internet option initially and informing respondents that a paper questionnaire is forthcoming, and 3) no Internet option. Half of each of these groups was provided a $10 debit card incentive at the time of first contact. This paper will compare the relative impact of each method on response, and make recommendations for other surveys interested in encouraging Internet response and/or using pre-paid incentives.