What's your business model?


How does make money? charges a premium subscription fee to families and caregivers for extra features

Innovation series by Steven Loeb
April 14, 2014
Short URL:

When Vator holds its two-day Splash Oakland event next month on May 6 and 7, one new addition is a "FUTURE of" series covering different the fastest-growing markets across tech and the opportunities they hold.

One panel, which I will be moderating, will be on marketplaces/the sharing economy, which are companies that rely on peer communities in which participants share access to products or services.

One company that is at the forefront of this movement is, a service that is used by families to find caregivers. It provides a place to easily connect and share caregiving experiences and get advice on needs such as child care, special needs care, tutoring and lessons, senior care, pet care and housekeeping. 

The service helps families find, and select, caregivers based on detailed profiles, background checks and references for hundreds of peer reviews and pre-screened providers.

So how does make money?

The company has multiple revenue streams:

  • Premium consumer subscriptions

Premium members fees break down to $39 for a single month, $78 for three months and $156 for a full year ssubscription. 

For caregivers that are looking to be hired, a premium members means that their profile will be highlighted in the search results, and they will also be ranked higher. They also receive priority email notification of new job listings.

They can also search the "Families Seeking" categories, see which families have viewed theur profile, contact families that have not yet posted a job and gives them a  free preliminary background check.

For families who become premium members, they get the ability to contact caregivers as well as other members on, see caregiver references, get free background checks, see full job posts and full profiles.

  • HomePay, its household payroll and tax service charges $175 per quarter for a single household employee, and another $75 for each additional household employee.

This service offers tax payroll management tools, as well as help with tax filingg.

  • Workplace Solutions, our employer program, where companies pay to subsidize the cost of our service for their employees as part of their benefit plans

Care custom designs Workplace Solutions specific to each client, so there is not a set fee that each company pays.

  • Business Services which enable able companies in the care space to recruit staff and/or advertise their services on

Companies pay either a set rate regardless of the number of referrals they receive, or a variable rate based on the number of referrals they receive, plus any applicable sales or other taxes.

Total revenue

In 2013,'s revenue was $81.5 million, up 68% from $48.5 million in 2012. The company does not break out how much revenue it recieved from each specific stream. 

It's total members also grew 46% to 9.7 million from 6.7 million in 2012. That number breaks down to 5.3 million familes, of which 551,000 are paying members, and 4.5 caregivers, of which 88,000 pay.

The company made $148,000 per paying family throughout the year, and $66,000 per paying caregiver. 

Founded in 2006, raised $109 million in total funding, most recently a $50 million round from from Matrix Partners, New Enterprise Associates and Trinity Ventures in August 2012, before going public in January of this year.

(Image source:

Related companies, investors and entrepreneurs

Description: is the “Ebay of space.” The online marketplace allows anyone from private residents to commercial properties to re...
Description: Founded in 2006, is the largest and fastest growing service used by families to find high-quality caregivers, providing a truste...

Related news


Featured Stories


Other episodes of this series

How does Pluralsight make money?


What's your business model?

by Steven Loeb
The edtech company charges a monthly or annual subscription fee to individuals and businesses

How does TripAdvisor make money?


What's your business model?

by Steven Loeb
TripAdvisor makes money from advertising, as well as booking fees from hotels and attractions

How does Smartsheet make money?


What's your business model?

by Steven Loeb
The company, which offers a cloud-based platform for work collaboration, has filed to go public

How does Trifacta make money?


What's your business model?

by Steven Loeb
The data wrangling company’s business model focuses on selling licenses of its software

How does Rovio make money?


What's your business model?

by Steven Loeb
Rovio makes most of its money from in-app purchases, but has diversified to other streams as well