Being the second eldest of six kids, babysitting was a natural job for me. The lawncare business was run during daylight (we tried cutting grass during the night, the neighbors complained about the noise and the customers complained about us mowing over their garden hose) so I was free to babysit after hours.
I started out babysitting for anyone who would ask me but as my reputation grew, I specialized. I became the baby babysitter (I once babysat a two day old child the day he came out of the hospital, his mom wanted to go out with the girls). With this specialization came an increase in pricing.
I also set up a system for the overflow. I had a few girlfriends that I would toss jobs to when I was too busy (some entrepreneurial kids charge for these referrals, I exchanged them for favors).
Learning:
With specialization comes higher pricing. Babies require special care. Heck, new moms require special care. Being known as someone who could handle both meant people were willing to pay more. How good was I? I could cloth diaper (with safety pins) with one hand.
Referrals are a reflection of the referrer. At first, I would toss clients to friends blindly. After a friend messed up royally (she invited a boyfriend over while she watched the kids), I lost that client for life. It also damaged my reputation. From then on, I screened my friends with dummy assignments first (family placements).
A nice house does not mean the client is financially fit. There was one family living in a gorgeous dream house. I envied them until I babysat for them. At the end of the night, I was asked if I could wait for my $20 until the next week when the executive husband got paid. Yep, they didn’t have the $20 to pay me.