Staying small
The idea of connecting supply with demand is not unique to Spilt Milk Nannies. A cursory Google search reveals dozens of businesses with a similar business model. So what sets Spilt Milk Nannies apart?
Squires came to SMN in August 2020, through a friend. She’d tried another online babysitting platform and found the volume of uncurated responses “overwhelming.” Her favorite thing about Spilt Milk Nannies—aside from her actual nanny—is the care Erin took in finding a good fit for her family.
Squires “was lamenting to [a friend] about how hard the start of the pandemic had been in our house, and she told me that she had a fabulous nanny that helped her family through the spring. I asked, ‘where do people find their fabulous nannies?’”
It’s a common story. According to McDonald, “A lot of people say finding great sitters is hard, let alone reliable and trusted sitters. Many businesses or people have tried to solve this with an app or a website. But the issue is that childcare needs to be personalized and vetted by a human.
“I do not think that multimillion dollar large businesses can truly know their customers. Childcare is not a product like toothpaste or even taxi rides.”
At Spilt Milk, every nanny and family is personally vetted by McDonald. Nannies are required to have CPR certification and at least two childcare references, and both nannies and families must pass a background check. McDonald interviews each potential nanny. “One of my favorite questions is asking the nannies how they’ve grown as a babysitter. I look for a response that recognizes they aren’t just there to hang out with kids, they are there to stick to routine, follow family rules, and engage with the kids all the while having fun.”
Rodriguez has been a nanny with SMN since late 2018. In that role, she sees herself as “a big sister, a friend, a companion, a safe space, a teacher, a mentor, a counselor, a tutor, and a big little kid.”
The personal approach has allowed SMN to outlast some well-funded competitors, like the Poppy app that operated from 2015 to 2018. Despite being popular with its users, owner Avni Patel Thompson shut down the company, telling GeekWire that “The economics weren’t sustainable to not only continue, but to scale, which is important for us as a venture-backed company.” Poppy made the bulk of its revenue by pocketing a few dollars per hour as the money flowed from families to sitters, who ranged in cost based on their experience and the number of children cared for.
In contrast, SMN families pay their nannies directly, and because they are all held to the same high standards, they all earn the same wage. Families pay a quarterly fee for access to the scheduling software.
“I love SMN’s website and booking system,” raves Lynn Noordam, a long-time member. “I feel it stands far above other companies.”
David Young has been using SMN since 2018. He and his wife spent a long time online comparing local babysitting services, but most required a large annual fee that they weren’t sure they’d recoup.
“When we found Spilt Milk Nannies, we clicked with the philosophy Erin laid out on the website, and she made the signup process really easy,” Young says.
McDonald abides by “the cliché, quality over quantity. We only grow as much as we can reasonably handle.” Her business grows primarily by word of mouth.
“Erin makes the service very personal,” Young said. “She gives you her phone number and email, she's on the roster of nannies herself, and she personally arranges for substitutes if a nanny has to cancel. It doesn't happen often, but once we had a nanny cancel at late notice, and as I was typing Erin a frantic text (we had dinner and concert plans for the evening) she sent me one: she'd already fixed us up with another nanny who was on the way!”
Spilt Milk Nannies turns 10 this year, and like so many recent birthdays, the celebration of this one will be somewhat different than previously envisioned. McDonald and the owners of SMN’s five other Pacific Northwest branches would have gathered for a spring park party with some of the 1,200 families and 100+ nannies they’d brought together at the companies’ peak.
But then COVID-19 happened.