1. ZAPPOS.COM
DELIVERING HAPPINESS
DOWNTOWN PROJECT

2. Downtown Project
Collisions
Community
Co-Learning

3. Slide 3

4. Slide 4
A Little About Me (Tony)
• 1994-1995: Pizza business in college

5. Slide 5
A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)
Sold to Microsoft for $265 million

6. Slide 6
A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)
Sold to Microsoft for $265 million
• 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.

7. Slide 7
A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)
Sold to Microsoft for $265 million
• 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
• 1999-Today: Zappos.com, Inc.

8. Slide 8
A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)
Sold to Microsoft for $265 million
• 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
• 1999-Today: Zappos.com, Inc.
• 2009: Amazon acquires Zappos for $1.2 billion
• 2010: NYT bestseller Delivering Happiness published

9. Slide 9
The Power of WOW
‘01 ‘02 ‘06‘03 ‘04 ‘05 ‘07‘00 ‘08
GrossSales$MM
$1,000
800
600
400
200

10. Slide 10
Customer Experience
 What do customers expect?
 What do customers actually experience?
 What emotions do customers feel?
 What stories do they tell their friends?
 How can culture create more stories and memories?

11. Slide 11
the #1 priority

12. Slide 12
the #1 priority
CULTURE

13. Slide 13
the #1 priority
CULTURE
4 weeks of training
Culture book
$4000 offer
Hiring for culture

14. Slide 14
Clothing, Customer Service, Culture
Customer Service
Clothing
Culture

15. Slide 15
Clothing

16. Slide 16
Customer Service

17. Slide 17
Culture

18. Slide 18
Clothing, Customer Service, Culture
Customer Service
Clothing
Culture

19. Slide 19
Delivering Happiness
(customers and employees)
“People will forget what you said.
People will forget what you did.
But people will never forget
how you made them feel.”
-Maya Angelou

20. Slide 20
Building Great

21. Slide 21
Ingredient #1

22. Slide 22
CULTURE
“Committable Core Values”
Don’t make your core values
just a meaningless plaque on the wall…

23. Slide 23
Example: Core Values
1. Deliver WOW Through Service
2. Embrace and Drive Change
3. Create Fun and a Little Weirdness
4. Be Adventurous, Creative, and Open-Minded
5. Pursue Growth and Learning
6. Build Open and Honest Relationships With Communication
7. Build a Positive Team and Family Spirit
8. Do More with Less
9. Be Passionate and Determined
10. Be Humble

24. Slide 24
COMMIT TO
TRANSPARENCY
“Be real and you have nothing to fear”
Your culture is your brand
Don’t try to be someone you are not
Parades at Zappos…

25. Slide 25
“That’s great…

26. Slide 26
“That’s great…
but it would
never work at my
company…”

27. Slide 27
ALIGNMENT
It doesn’t matter what your
core values are…
as long as you
commit to them.

28. Slide 28
Ingredient #2

29. Slide 29
VISION
“Whatever you’re thinking, think bigger.”
Does the vision have meaning?
Chase the vision, not the money…

30. Slide 30
VISION
“Don’t chase the paper,
chase the dream.”
Sean Combs aka “Puff Daddy” to rapper
Biggie Smalls aka “Notorious B.I.G.”
in Notorious

31. Slide 31
ENTREPRENEURS:
“What would you be
passionate about doing
for 10 years even if you
never made a dime?”

32. Slide 32
EMPLOYEES:
What’s the larger vision
and greater purpose in
their work beyond
money or profits?

33. Slide 33
MOTIVATION

34. Slide 34
MOTIVATION
vs.
INSPIRATION

35. Slide 35
Vision & Culture
inspire
Passion & Purpose

36. Slide 36
Evolving vision and brand at
Zappos.com
 1999 Selection
 2003 Customer Service
 2005 Culture and core values as our platform
 2007 Personal Emotional Connection
 2009 Delivering Happiness

37. Slide 37
Questions
 Where does the story begin?
 Where does the story end?
 How do you reinforce the good memories?
 What were the emotions, positive and negative?
 How can you create more stories and memories?

38. Slide 38
What’s your business?
 You’re not in the _______ business.
 Cirque du Soleil is not in the circus business.
 You’re in the experience and emotions business.
 You’re in the stories and memories business.
 Think bigger.

39. Slide 39
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
“a great brand is… ______”

40. Slide 40
Zappos.com
http://media.glassdoor.com/m/7b/2c/00/f6/entrance-to-the-zappos-com-headquarter-office-in-
henderson-nv-photo-by.jpg

41. Slide 41
Las Vegas City Hall
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg

42. Slide 42
Las Vegas City Hall

43. Slide 43
Las Vegas City Hall

44. Slide 44
Nike
http://standardatl.com/home/wp-content/uploads/2010/07/Nike_Campus_Tour_01.jpg

45. Slide 45
Google
http://static.panoramio.com/photos/original/400729.jpg

46. Slide 46
Apple
http://www.techzek.com/wp-content/uploads/2011/09/apple_campus-1.jpg

47. Slide 47
Doggy Day Care
http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG

48. Slide 48
NYU Campus
http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG

49. Slide 49
Downtown Vegas - Fremont East
http://www.eatinglv.com/wordpress/wp-content/gallery/odettedowntown/chinatown-038-large.jpg

50. Slide 50
Downtown Vegas - Fremont East
http://www.lucyvegas.com/sites/default/files/griffin5.jpg

51. Slide 51
Downtown Vegas - Fremont East

52. Slide 52
Downtown Vegas - Fremont East
http://roadjournals.viamagazine.com/wp-content/uploads/2011/05/The-Beat-Coffeehouse.jpg

53. Slide 53
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture

54. Slide 54
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
Community

55. Slide 55
DOWNTOWN PROJECT - $350M
$ 50M – Small businesses
$ 50M – Tech Startups
$ 50M – Education, Arts, Culture
$200M – Real Estate

56. Slide 56
DOWNTOWN PROJECT GOALS

57. Slide 57
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance

58. Slide 58
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
The Most Community-Focused Large
City in the World

59. Slide 59
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
The Most Community-Focused Large
City in the World
The Co-Learning and Co-working Capital
of the World

60. Slide 60
ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…

61. Slide 61
ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC

62. Slide 62
ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Community)

63. Slide 63
ROI vs. ROC and ROL
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Community)
and institutionalizing ROL

64. Slide 64
ROI vs. ROC and ROL
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Community)
and institutionalizing ROL
(Return On Luck) – Accelerating Serendipity

65. Slide 65
THE BIG BET
Accelerating
Collisions, Community, and Co-Learning

66. Slide 66
THE BIG BET
Accelerating
Collisions, Community, and Co-Learning
…will lead to…
Happiness, Luckiness,
Innovation, and Productivity

67. Slide 67
DOWNTOWN PROJECT - $350M
$ 50M – Small businesses
$ 50M – Tech Startups
$ 50M – Education, Arts, Culture
$200M – Real Estate

68. Slide 68
$50M – Small Businesses

69. Slide 69
$50M – Small Businesses
 Criteria

70. Slide 70
$50M – Small Businesses
 Criteria
 Owner Operated - Passionate

71. Slide 71
$50M – Small Businesses
 Criteria
 Owner Operated - Passionate
 Helps Build Community

72. Slide 72
$50M – Small Businesses
 Criteria
 Owner Operated - Passionate
 Helps Build Community
 Execution Ability

73. Slide 73
$50M – Small Businesses
 Criteria
 Owner Operated - Passionate
 Helps Build Community
 Execution Ability
 Sustainable

74. Slide 74
$50M – Small Businesses
 Criteria
 Owner Operated - Passionate
 Helps Build Community
 Execution Ability
 Sustainable
 Unique or First or Best at Something

75. Slide 75
$50M – Small Businesses
 Criteria
 Owner Operated - Passionate
 Helps Build Community
 Execution Ability
 Sustainable
 Unique or First or Best at Something
 Story-worthy

76. Slide 76
Natalie

77. Slide 77
Natalie

78. Slide 78
Natalie

79. Slide 79
Natalie

80. Slide 80
Natalie

81. Slide 81
Natalie

82. Slide 82
Check Cashing
http://www.vegaschatter.com/files/100501/checks_cashed..jpg

83. Slide 83
Check Cashing

84. Slide 84
Sarah

85. Slide 85
Sarah

86. Slide 86
Sarah

87. Slide 87
Shipping Containers
http://images03.olx.com/ui/8/84/18/1280992807_108377618_4-cargo-containers-40ft-20-ft-For-Sale.jpg

88. Slide 88
Shipping Containers

89. Slide 89
Shipping Container Park

90. Slide 90
Shipping Container Park

91. Slide 91
Shipping Container Park

92. Slide 92
Shipping Container Park

93. Slide 93
Shipping Container Park

94. Slide 94
Bike Sharing

95. Slide 95
$50M – Tech Startups
http://img-
s.foursquare.com/pix/EN1ZIL0JC5HTCZYD0PW41SWQYJHURTD204ZFZYBFGPM3F5JS.jpg

96. Slide 96
$50M – Tech Startups
http://timenerdworld.files.wordpress.com/2011/12/romotivefinal.jpg?w=576

97. Slide 97
The City as a Startup
http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png

98. Slide 98
$50M – Startups
http://www.shebytes.com/wp-content/uploads/2011/12/venture-for-america-12-12-11.jpg

99. Slide 99
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg

100. Slide 100
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg

101. Slide 101
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg

102. Slide 102
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg

103. Slide 103
$50M – Education, Arts, Culture
http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg

104. Slide 104
$50M – Education, Arts, Culture
http://mikerossart.net/images/mikeross_enter.jpg

105. Slide 105
$50M – Education, Arts, Culture

106. Slide 106

107. Slide 107

108. Slide 108
$200M – Real Estate
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg

109. Slide 109
WHEN CITIES DOUBLE IN SIZE…
Productivity and innovation per resident
increases by 15%
(But not true for companies)
Accelerate serendipity -> Accelerate learning ->
Accelerate productivity and innovation

110. Slide 110
3 INGREDIENTS FOR SERENDIPITY
1. Residential density of 100 residents/acre
2. Street-level activity for residents to
collide
3. Culture of openness, collaboration,
creativity, and optimism

111. Slide 111
HOW TO ACCELERATE LEARNING &
INNOVATION
Maximize serendipitous interactions
Density in the office
Density in the city
Collisions vs. convenience

112. Slide 112
Las Vegas City Hall
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg

113. Slide 113
DIFFERENT GROUPS COLLIDING
1. 2000 Zappos employees
2. 1000 Teach For America corp members
and alumni
3. Tech Startup Community
4. Small Business Community
5. Art and Music Communities
6. Other Passion Communities
7. Local Residents

114. Slide 114
LEARNING FROM ZAPPOS &
COWORKING…
Culture is to a Company

115. Slide 115
LEARNING FROM ZAPPOS &
COWORKING…
Culture is to a Company
as
Community is to a City

116. Slide 116
LEARNING FROM ZAPPOS &
COWORKING…
Culture is to a Company
as
Community is to a City
Values
Innovation
Serendipity
Participation
Upward Mobility
Attracting Startups and the Creative Class

117. Slide 117
Our Secret Weapon
http://static3.vipasuite.com/resources/dyn/images/459355w783h429s185b/_fn/ogden-3.jpg

118. Slide 118
LEARNING FROM TED, SUMMIT
SERIES, SXSW, BIF…
Curated Content
Serendipity
Learning
Connections
Community

119. Slide 119
Downtown Vegas Every Day
Curated Content
Serendipity
Learning
Connections
Community

120. Slide 120
Fremont St. & Las Vegas Blvd.

121. Slide 121
Fremont St. & Las Vegas Blvd.

122. Slide 122
Fremont St. & Las Vegas Blvd.

123. Slide 123
Fremont St. & Las Vegas Blvd.

124. Slide 124
Fremont St. & Las Vegas Blvd.

125. Slide 125
Fremont St. & Las Vegas Blvd.

126. Slide 126
Fremont St. & Las Vegas Blvd.

127. Slide 127
Fremont St. & Las Vegas Blvd.

128. Slide 128
Fremont St. & Las Vegas Blvd.

129. Slide 129
Fremont St. & Las Vegas Blvd.

130. Slide 130
Downtown Vegas Monthly Cadence

131. Slide 131
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week

132. Slide 132
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Week 2 – Tech Week

133. Slide 133
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Week 2 – Tech Week
Week 3 – Fashion Week

134. Slide 134
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Week 2 – Tech Week
Week 3 – Fashion Week
Week 4 – Catalyst Week

135. Slide 135
Fashion Incubator – Stitch Factory

136. Slide 136
Fashion Incubator – Stitch Factory

137. Slide 137
Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?

138. Slide 138
Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?
3-4 hours/day

139. Slide 139
Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?
3-4 hours/day
x 7 days/week

140. Slide 140
Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?
3-4 hours/day
x 7 days/week
x 40 weeks/year

141. Slide 141
Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?
3-4 hours/day
x 7 days/week
x 40 weeks/year
= 1000 “collisionable” hours/year

142. Slide 142
Jake – Flint and Tinder
http://images.fastcompany.com/upload/inline-Made-In-The-USA-Flint-And-Tinder-Undies-And-You-
Will-Love-It-b.jpg

143. Slide 143
Jake – Flint and Tinder

144. Slide 144
Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?

145. Slide 145
Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
12 hours/day

146. Slide 146
Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week

147. Slide 147
Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
x 12 weeks/year

148. Slide 148
Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
x 12 weeks/year
= 1000 “collisionable” hours/year

149. Slide 149
Return On Collisions (ROC)
“Subscribe” to
Downtown Vegas

150. Slide 150
Return On Collisions (ROC)
1. 100 residents per acre
2. Street-level activity for residents to
collide
3. Culture of openness, collaboration,
creativity, and optimism

151. Slide 151
Return On Collisions (ROC)
1. 100 residents per acre

152. Slide 152
Return On Collisions (ROC)
1. 100,000

153. Slide 153
Return On Collisions (ROC)
1. 100,000 “collisionable”

154. Slide 154
Return On Collisions (ROC)
1. 100,000 “collisionable” community

155. Slide 155
Return On Collisions (ROC)
1. 100,000 “collisionable” community
hours

156. Slide 156
Return On Collisions (ROC)
1. 100,000 “collisionable” community
hours per

157. Slide 157
Return On Collisions (ROC)
1. 100,000 “collisionable” community
hours per acre

158. Slide 158
Return On Collisions (ROC)
1. 100,000 “collisionable” community
hours per acre per

159. Slide 159
Return On Collisions (ROC)
1. 100,000 “collisionable” community
hours per acre per year

160. Slide 160
Return On Collisions (ROC)
1. 100,000 “collisionable” community
hours per acre per year
2.3 collisionable hours
per square foot
per year

161. Slide 161
OUR BIG BET… 3 Guiding Principles
Accelerate:
1.Collisions
2.Community
3.Co-Learning
And everything else will fall into place…
(productivity, innovation, growth, happiness)
What will people say about downtown?

162. Slide 162

163. Slide 163
ZAPPOS, DELIVERING HAPPINESS,
DOWNTOWN PROJECT

164. Slide 164
50% of Humans Live in Cities
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg

165. Slide 165
75% Will Live In Cities in
Our Lifetime
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg

166. Slide 166
The 4-Minute Mile

167. Slide 167
The 4-Minute Mile
http://en.wikipedia.org/wiki/File:Iffley_Road_Track,_Oxford_-_blue_plaque.JPG

168. Slide 168
www.DowntownProject.com
tony@zappos.com
http://langintro.com/lv_dec_2010/pics/0950_emergency_arts_window.jpg

169. Slide 169
A great
brand
is a story that never stops unfolding.

170. Slide 170
A great
brand
company
is a story that never stops unfolding.

171. Slide 171
A great
brand
company
city
is a story that never stops unfolding.

172. Slide 172
A great
brand
company
city
community
is a story that never stops unfolding.

173. Slide 173
Thank you!
For a copy of this presentation:
tony@zappos.com
For more information:
www.DowntownProject.com

174. Slide 174
http://www.youtube.com/watch?v=AF4f3l4a4_A