This Side Hustle Spotlight Q&A features Alaa El Ghatit, founder of LifeOnRecord. LifeOnRecord is a service that allows people to tell stories, memories and well-wishes over the phone for someone celebrating a birthday, retirement, wedding or other special occasion. Recordings are placed in a keepsake speaker or vinyl album.
Image credit: Courtesy of Alaa El Ghatit
When did you start LifeOnRecord as a side business and what inspired it?
In 2006, I was working in the IT department of a large employee benefits consulting firm, managing 60 people, and I wasn’t satisfied with my job. I didn’t like sitting in meetings all day and wanted to put myself more out there again and work on something more meaningful, but I couldn’t see a viable path to doing that where I was.
In my spare time I was playing with a phone system and wondering if I could create a business by having people call and record their favorite stories and memories about a person as a way to celebrate their birthday, retirement, wedding, etc.
Related: He started a side business in his parents’ basement and won big on Richard Branson’s TV show. The company had annual revenue of more than $650 million last year.
What were some of the first steps you took to get the side hustle off the ground?
My mother-in-law’s 65th birthday was approaching and I thought she would love to hear from all her children, grandchildren, friends, husband, etc.
So, as proof, I created a phone number for everyone to call and gave her the resulting recordings on a CD (remember: this was 2006). We all listened to it together on her birthday in her living room. She loved it, there were tears and she sparked a lot of fuss (18 years later, she still loves it).
I thought the idea had some traction, so I worked on it in my spare time to turn it into a service.
A few months later I was made redundant and decided to take some time to try and grow the business. People started ordering, but not in the quantities that would allow me to support my wife and four young children, so after nine months I took a job as an IT director for a medium-sized company where I could be active and manage a small squad.
Were there any challenges related to managing the side hustle? If so, how did you explore them?
Navigating the LifeOnRecord side hustle presented three significant challenges. First, I got used to the security of a corporate salary with the entrepreneurial aspect of LifeOnRecord. I liked both, which kept me from fully committing to LifeOnRecord. Despite the automation and minimal time required by LifeOnRecord, the camaraderie of my corporate role has left me hesitant to leave the company until 2022.
Additionally, keeping LifeOnRecord a secret from colleagues fostered an emotional barrier, making me more secretive and unable to share valuable information in both of my worlds. This secrecy persisted until the crucial moment when I decided to leave my corporate job. Surprisingly, after revealing LifeOnRecord to the CEO, I found unexpected support instead of resistance. The company facilitated a smooth transition, allowing me to gradually shift my focus to LifeOnRecord, with the CEO providing guidance along the way.
Finally, one of the first challenges involved defending LifeOnRecord’s intellectual property from infringement by a multinational corporation. Through perseverance and direct negotiation, which took more than a year, I obtained a deal from them without legal intervention and licensed my intellectual property to them for a fair but significant fee.
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How long did it take to start seeing consistent monthly income? On average, how much revenue did it bring in?
Growth was gradual, but people who used the service told others about it and became repeat buyers. Before I focused on this full-time, I was making just over $100,000 a year as a side hustle. On my corporate salary, it allowed us to live comfortably, fund college for my children, and go on trips.
How much annual revenue do you expect LifeOnRecord to see this year?
For me, it’s less about money and growth, but more about being able to provide a personal, customer-centric experience that I can be directly involved in. That said, last year was the first year it was a full year. time, and it brought in about $350,000, and we will more than double that amount this year. We are always extremely responsive to customer questions and requests, and I don’t want the situation to get so big that exceptional customer service is no longer a priority.
How did you approach scaling the company? What was really key to helping him grow?
From the beginning, my strategy has been to leverage technology to broaden and improve the customer experience. Recognizing that customers wanted more control over their contributions, I developed a “My Recordings” portal to allow them to edit, organize, or delete their messages. I’ve simplified the audio enhancement process by partnering with Dolby Labs for world-class vocal clarity and noise reduction, and I’ve expanded contribution options beyond traditional phone calls to include six alternative methods.
[While] Balancing this growth with my business responsibilities, I have been careful not to expand too quickly, aiming to maintain a healthy balance between my day job and LifeOnRecord. This balance has allowed me to enjoy the benefits of both my professional career and my business venture without overwhelming myself or the company.
A key innovation was the introduction of vintage rotary telephone hire for wedding receptions so guests could leave messages for the bride and groom. Unlike competitors who simply rent phones, we have integrated these components into our broader service ecosystem. Guests love the charm of leaving messages on these classic devices, which are then enhanced and preserved through our platform.
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As you look back on your journey with LifeOnRecord, is there anything you wish you had done differently?
There is a lingering thought that perhaps I should have moved away from the corporate world sooner to fully embrace the entrepreneurial path with LifeOnRecord. The allure of stability and a predictable income often held me back, anchoring me in a role that, while comfortable, perhaps limited the growth potential of my passion project. Yet, every decision brings with it a positive side.
Staying in my corporate job perhaps longer than I should have allowed me to gain valuable lessons and experiences. It was in this professional context that I honed skills that later became crucial in navigating the entrepreneurial landscape: the discipline of project management, the art of negotiation and the ability to lead a team.
This period also served as a vital incubation phase for LifeOnRecord. It allowed me to slowly but surely build the foundation of the business, testing ideas and refining the model without the immediate pressure of having to be my only source of income. In a way, it gave me the freedom to experiment and innovate with less risk, laying the foundation for what LifeOnRecord would eventually become.
What excites you most about the future of LifeOnRecord?
Customers have used LifeOnRecord in innovative ways. People used LifeOnRecord to send audio thank yous, and brides recorded their feelings of “saying yes to the dress” using LifeOnRecord, then played the recording as they walked down the aisle. I think there are many other ways to market LifeOnRecord that we can explore in the future.
What is your favorite part of running your business today?
I love the impact the company has on customers. When I worked in corporate, I felt like a cog in a wheel, but with LifeOnRecord, I created a way for people to connect with others. I’m especially grateful when people purchase it and record messages for someone with a terminal illness. They say it’s one of the few things they can do to show how much that person is loved.
Beyond that, I like the lifestyle flexibility and not having to be accountable to anyone other than our clients. I love identifying with it and the excitement other people feel when I share what I do.
Related: This former Ph.D. Student Started Side Business to Graduate Debt-Free — Now Makes $30,000 a Month and Can Complete a Job in 15 Minutes
Do you have any advice for others interested in starting a side hustle or their own business?
I would suggest being kind to yourself. While there is a flood of stories about individuals earning astronomical sums from side hustles, such cases are extremely rare. Usually, progress is slower than expected, resembling a dance of “two steps forward, one step back.”
Building a principled business that will last takes patience and time.
Leverage your day-to-day work for its intended purpose: a means to mitigate risk as you navigate the path to building a business with lasting impact.