Business Overview

There’s nothing in life more precious than your child. Families looking for a nanny to care for their young ones turn to referral agencies, who have the time and resources to conduct thorough background checks. For many, nannies become an integral part of their family unit, and your work is an integral part of that process.

Who is this business right for?

This is a wonderful opportunity for someone who enjoys working with adults and children, helping them navigate through the challenges of parenthood. The individual looking to start a nanny referral agency should also enjoy spending time on the computer conducting research. In addition, those who enjoy connecting and interacting with people will find this type of work enjoyable and rewarding.

What happens during a typical day at a nanny referral agency?

Given the sensitivity of the services your agency provides, you’ll want to take a hands-on approach to your work. There are a number of activities that will keep you busy day in and day out.

Most days will include the following activities:

  • Conduct interviews with families to get a feel for what their needs are
  • Check nanny’s professional and personal references, passing that information on to the family
  • Verify nanny’s background history, including identity, education and employment history, perform state and county criminal searches, including the sex offender registry, review candidate’s driving record
  • Conduct personal interviews with nannies
  • Identify which nanny would be a good fit with each family
  • Perform periodic screening updates to ensure nothing has changed since placement
  • Market your business
  • Research to ensure your business is current with nanny referral business best practices

In addition, there will be administrative duties to attend to. Once your business has grown and you’ve built a team of trusted employees, you can delegate these responsibilities to your staff.

What is the target market?

While the nanny is, in a sense, your customer, the families are your true clients. Your goal is to connect the right nannies and families together, building long-lasting relationships. Thus, your preferred customer is the family or individual who understands the intricacies and financial implications of hiring a nanny and is committed to ensuring their child(ren) receive the best possible care.

How does a nanny referral agency make money?

All fees are paid for by the family and are set depending upon the services they require. For example, a family seeking a live-in nanny will be charged a higher fee than one that requires a part-time nanny. Fees can be either a fixed percentage of the nanny’s salary or a flat-rate cost.

What is the growth potential for a nanny referral agency?

The value of nanny care has grown exponentially over the last decade, offering great opportunity for success in the referral agency industry. Growth opportunities are dependent upon demand, affordability of services, and availability of quality nannies in your area.