Local nanny placement agency

Families looking for a nanny, and sometimes employers or concierge services that offer childcare help as a perk.

A placement fee charged to the family, either a flat amount or a share of the nanny's first-year pay, sometimes with a smaller registration fee up front.

• Good judgment about people
• Clear communication with families and candidates
• Organized record keeping
• Comfortable with sales and follow-up

• Some states regulate employment or placement agencies and may cap or restrict fees, check with your state labor department
• Background checks must follow federal and state rules, so use a reputable screening provider and check consent requirements
• Liability if a placement goes wrong, ask an insurance agent about general and professional liability cover
• Families usually owe household employer taxes, so be clear that you place nannies and are not their payroll provider
• Working from home may need a home occupation permit and must respect HOA or lease rules

Startup costs are typically estimated at around $1,500 to $6,000, depending on your screening provider, website and marketing. Running from home keeps overhead low, though you may need a home occupation permit.

Monthly revenue is typically estimated at around $1,000 to $5,000, depending on how many placements you complete and the fee you charge. Income can vary from month to month, as you earn a fee on each successful placement.

Check whether your state regulates employment or placement agencies and any fee limits with your state labor department. Background checks must follow federal and state rules, so use a reputable screening provider. Also ask an insurance agent about liability cover.