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5 Business Models for Your Nanny Agency

October 12, 2020

Running and growing a nanny agency is hard yet rewarding work. If you’re considering starting your own agency, or you’re an agency owner thinking of changing up their business model, this blog post can help. I talk about different business models for nanny agencies so that you can choose one that will best fit your vision of your new agency.

Referral basis

A referral-based nanny agency refers nannies to inquiring families. Think of yourself as the middleman between nanny and family. By using your referral service, families spend less time screening potential nannies and can quickly find the perfect nanny for their family.

With this type of agency, you’re responsible for vetting each nanny thoroughly by conducting background checks, contacting references, and learning more about their previous experience and/or education. To make money, you collect fees whenever a nanny is placed with a family through your service.

Interviews only

A nanny agency that provides interviews is similar to a referral-based agency. Both types of agencies screen nanny candidates and conduct background checks. However, this type of agency goes one step further in the process and interviews nanny candidates on the family’s behalf. The agency gets to know the family beforehand so they can choose the best nanny.

Many families who hire a nanny agency don’t have the time to interview candidates on their own, or they’d prefer to leave it up to experts in the nanny industry. Once a nanny is found, the family employs their new nanny themselves.

Household staffing agency

A household staffing agency goes beyond nanny placements. In addition to nanny placements, you may also offer placements for the following services:

  • Household managers
  • Housekeepers
  • Private home educators
  • Mother’s helpers
  • Adult caregivers
  • Personal assistants
  • Personal chefs

You can also expand your child care placement services by including babysitters, newborn care specialists, doulas, or sleep specialists.

If your current clients often ask you for referrals for these services, this type of agency may be for you. It’s also a good way to bring in more income in case demand for nannies in your area decreases.

Staffed agency

A staffed agency does more than refer, screen, and place nannies with families. In the previous business models we talked about, the parents become the employers once a nanny is placed in their home. When you run a staffed agency, you act as the employer instead, contracting nannies out to families.

This is an attractive option for many parents who don’t want to worry about handling employment contracts, taxes, benefits, and pay. If you’re not familiar with being an employer, the experience can be overwhelming. Many parents will happily invest in a staffed agency to take care of their nanny’s employment for them.

Temporary or as-needed placements

When parents need a nanny for the next few months, they may seek out a nanny agency that provides short-term or temporary placements. Generally, long-term placements last for 12 months or more; short-term placements are less than 12 months. A short-term placement can offer parents who are between nannies a temporary solution.

If parents need child care in a pinch, your agency might provide as-needed placements, too. Typical nanny placements are like any other hiring process: it takes time to choose potential candidates, screen and interview them, and set up their employment. As-needed services provide families with immediate on-call care, like babysitting for a night or coverage for vacation.

Find more resources on the blog

I hope this blog has helped you decide what type of agency you want to launch, or which new business model is right for you. For more tips on running a successful nanny agency, remember to follow the Megan Metzger Consulting blog. There you’ll find resources on adjusting your budget, adapting your business post-pandemic, and preparing for the holiday season! And don’t forget to join my newsletter list, where I share special tips and let you know about upcoming trainings, events, and more.

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"Megan Metzger has been an excellent resource for my agency. The depth of her knowledge is exceptional. She was quick to understand my needs, what I wanted to accomplish, and helped me implement processes and strategies to achieve my goals. I would highly recommend Megan to agencies with consulting/training needs or anyone looking to start an agency."
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Owner, Bettsy Jane Agency
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