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ZAPPOS.COM
DELIVERING HAPPINESS
DOWNTOWN PROJECT
Downtown Project
Collisions
Community
Co-Learning
Slide 3
Slide 4
A Little About Me (Tony)
• 1994-1995: Pizza business in college
Slide 5
A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)
Sold to Microsoft for $265 million
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.
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.
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 $1.2 billion
• 2010: NYT bestseller Delivering Happiness published
Slide 9
The Power of WOW
‘01 ‘02 ‘06‘03 ‘04 ‘05 ‘07‘00 ‘08
GrossSales$MM
$1,000
800
600
400
200
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?
Slide 11
the #1 priority
Slide 12
the #1 priority
CULTURE
Slide 13
the #1 priority
CULTURE
4 weeks of training
Culture book
$4000 offer
Hiring for culture
Slide 14
Clothing, Customer Service, Culture
Customer Service
Clothing
Culture
Slide 15
Clothing
Slide 16
Customer Service
Slide 17
Culture
Slide 18
Clothing, Customer Service, Culture
Customer Service
Clothing
Culture
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
Slide 20
Building Great
Slide 21
Ingredient #1
Slide 22
CULTURE
“Committable Core Values”
Don’t make your core values
just a meaningless plaque on the wall…
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
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…
Slide 25
“That’s great…
Slide 26
“That’s great…
but it would
never work at my
company…”
Slide 27
ALIGNMENT
It doesn’t matter what your
core values are…
as long as you
commit to them.
Slide 28
Ingredient #2
Slide 29
VISION
“Whatever you’re thinking, think bigger.”
Does the vision have meaning?
Chase the vision, not the money…
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
Slide 31
ENTREPRENEURS:
“What would you be
passionate about doing
for 10 years even if you
never made a dime?”
Slide 32
EMPLOYEES:
What’s the larger vision
and greater purpose in
their work beyond
money or profits?
Slide 33
MOTIVATION
Slide 34
MOTIVATION
vs.
INSPIRATION
Slide 35
Vision & Culture
inspire
Passion & Purpose
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
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?
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.
Slide 39
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
“a great brand is… ______”
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
Slide 41
Las Vegas City Hall
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
Slide 42
Nike
http://standardatl.com/home/wp-content/uploads/2010/07/Nike_Campus_Tour_01.jpg
Slide 43
Google
http://static.panoramio.com/photos/original/400729.jpg
Slide 44
Apple
http://www.techzek.com/wp-content/uploads/2011/09/apple_campus-1.jpg
Slide 45
Doggy Day Care
http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
Slide 46
NYU Campus
http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
Slide 47
Downtown Vegas - Fremont East
http://www.eatinglv.com/wordpress/wp-content/gallery/odettedowntown/chinatown-038-large.jpg
Slide 48
Downtown Vegas - Fremont East
http://www.lucyvegas.com/sites/default/files/griffin5.jpg
Slide 49
Downtown Vegas - Fremont East
Slide 50
Downtown Vegas - Fremont East
http://roadjournals.viamagazine.com/wp-content/uploads/2011/05/The-Beat-Coffeehouse.jpg
Slide 51
DOWNTOWN PROJECT - $350M
$ 50M – Small businesses
$ 50M – Tech Startups
$ 50M – Education, Arts, Culture
$200M – Real Estate
Slide 52
DOWNTOWN PROJECT GOALS
Slide 53
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
Slide 54
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
The Most Community-Focused Large
City in the World
Slide 55
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
Slide 56
ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…
Slide 57
ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
Slide 58
ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Community)
Slide 59
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
Slide 60
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
Slide 61
THE BIG BET
Accelerating
Collisions, Community, and Co-Learning
Slide 62
THE BIG BET
Accelerating
Collisions, Community, and Co-Learning
…will lead to…
Happiness, Luckiness,
Innovation, and Productivity
Slide 63
DOWNTOWN PROJECT - $350M
$ 50M – Small businesses
$ 50M – Tech Startups
$ 50M – Education, Arts, Culture
$200M – Real Estate
Slide 64
$50M – Small Businesses
Slide 65
$50M – Small Businesses
 Criteria
Slide 66
$50M – Small Businesses
 Criteria
 Owner Operated - Passionate
Slide 67
$50M – Small Businesses
 Criteria
 Owner Operated - Passionate
 Helps Build Community
Slide 68
$50M – Small Businesses
 Criteria
 Owner Operated - Passionate
 Helps Build Community
 Execution Ability
Slide 69
$50M – Small Businesses
 Criteria
 Owner Operated - Passionate
 Helps Build Community
 Execution Ability
 Sustainable
Slide 70
$50M – Small Businesses
 Criteria
 Owner Operated - Passionate
 Helps Build Community
 Execution Ability
 Sustainable
 Unique or First or Best at Something
Slide 71
$50M – Small Businesses
 Criteria
 Owner Operated - Passionate
 Helps Build Community
 Execution Ability
 Sustainable
 Unique or First or Best at Something
 Story-worthy
Slide 72
Natalie
Slide 73
Natalie
Slide 74
Natalie
Slide 75
Natalie
Slide 76
Natalie
Slide 77
Natalie
Slide 78
Check Cashing
http://www.vegaschatter.com/files/100501/checks_cashed..jpg
Slide 79
Check Cashing
Slide 80
Sarah
Slide 81
Sarah
Slide 82
Sarah
Slide 83
Shipping Containers
http://images03.olx.com/ui/8/84/18/1280992807_108377618_4-cargo-containers-40ft-20-ft-For-Sale.jpg
Slide 84
Shipping Containers
Slide 85
Shipping Container Park
Slide 86
Shipping Container Park
Slide 87
Shipping Container Park
Slide 88
Shipping Container Park
Slide 89
Bike Sharing
Slide 90
$50M – Tech Startups
http://img-
s.foursquare.com/pix/EN1ZIL0JC5HTCZYD0PW41SWQYJHURTD204ZFZYBFGPM3F5JS.jpg
Slide 91
$50M – Tech Startups
http://timenerdworld.files.wordpress.com/2011/12/romotivefinal.jpg?w=576
Slide 92
The City as a Startup
http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png
Slide 93
$50M – Startups
http://www.shebytes.com/wp-content/uploads/2011/12/venture-for-america-12-12-11.jpg
Slide 94
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
Slide 95
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
Slide 96
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
Slide 97
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
Slide 98
$50M – Education, Arts, Culture
http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg
Slide 99
$50M – Education, Arts, Culture
http://mikerossart.net/images/mikeross_enter.jpg
Slide 100
$50M – Education, Arts, Culture
Slide 101
Slide 102
Slide 103
$200M – Real Estate
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
Slide 104
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
Slide 105
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
Slide 106
HOW TO ACCELERATE LEARNING &
INNOVATION
Maximize serendipitous interactions
Density in the office
Density in the city
Collisions vs. convenience
Slide 107
Las Vegas City Hall
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
Slide 108
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
Slide 109
LEARNING FROM ZAPPOS &
COWORKING…
Culture is to a Company
Slide 110
LEARNING FROM ZAPPOS &
COWORKING…
Culture is to a Company
as
Community is to a City
Slide 111
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
Slide 112
Our Secret Weapon
http://static3.vipasuite.com/resources/dyn/images/459355w783h429s185b/_fn/ogden-3.jpg
Slide 113
LEARNING FROM TED, SUMMIT
SERIES, SXSW, BIF…
Curated Content
Serendipity
Learning
Connections
Community
Slide 114
Downtown Vegas Every Day
Curated Content
Serendipity
Learning
Connections
Community
Slide 115
Fremont St. & Las Vegas Blvd.
Slide 116
Fremont St. & Las Vegas Blvd.
Slide 117
Fremont St. & Las Vegas Blvd.
Slide 118
Fremont St. & Las Vegas Blvd.
Slide 119
Fremont St. & Las Vegas Blvd.
Slide 120
Fremont St. & Las Vegas Blvd.
Slide 121
Fremont St. & Las Vegas Blvd.
Slide 122
Fremont St. & Las Vegas Blvd.
Slide 123
Fremont St. & Las Vegas Blvd.
Slide 124
Fremont St. & Las Vegas Blvd.
Slide 125
Downtown Vegas Monthly Cadence
Slide 126
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Slide 127
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Week 2 – Tech Week
Slide 128
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Week 2 – Tech Week
Week 3 – Fashion Week
Slide 129
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Week 2 – Tech Week
Week 3 – Fashion Week
Week 4 – Catalyst Week
Slide 130
Fashion Incubator – Stitch Factory
Slide 131
Fashion Incubator – Stitch Factory
Slide 132
Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?
Slide 133
Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?
3-4 hours/day
Slide 134
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
Slide 135
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
Slide 136
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
Slide 137
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
Slide 138
Jake – Flint and Tinder
Slide 139
Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
Slide 140
Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
Slide 141
Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
Slide 142
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
Slide 143
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
Slide 144
Return On Collisions (ROC)
“Subscribe” to
Downtown Vegas
Slide 145
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
Slide 146
Return On Collisions (ROC)
1. 100 residents per acre
Slide 147
Return On Collisions (ROC)
1. 100,000
Slide 148
Return On Collisions (ROC)
1. 100,000 “collisionable”
Slide 149
Return On Collisions (ROC)
1. 100,000 “collisionable” community
Slide 150
Return On Collisions (ROC)
1. 100,000 “collisionable” community
hours
Slide 151
Return On Collisions (ROC)
1. 100,000 “collisionable” community
hours per
Slide 152
Return On Collisions (ROC)
1. 100,000 “collisionable” community
hours per acre
Slide 153
Return On Collisions (ROC)
1. 100,000 “collisionable” community
hours per acre per
Slide 154
Return On Collisions (ROC)
1. 100,000 “collisionable” community
hours per acre per year
Slide 155
Return On Collisions (ROC)
1. 100,000 “collisionable” community
hours per acre per year
2.3 collisionable hours
per square foot
per year
Slide 156
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?
Slide 157
Slide 158
ZAPPOS, DELIVERING HAPPINESS,
DOWNTOWN PROJECT
Slide 159
50% of Humans Live in Cities
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
Slide 160
75% Will Live In Cities in
Our Lifetime
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
Slide 161
The 4-Minute Mile
Slide 162
The 4-Minute Mile
http://en.wikipedia.org/wiki/File:Iffley_Road_Track,_Oxford_-_blue_plaque.JPG
Slide 163
www.DowntownProject.com
tony@zappos.com
http://langintro.com/lv_dec_2010/pics/0950_emergency_arts_window.jpg
Slide 164
A great
brand
is a story that never stops unfolding.
Slide 165
A great
brand
company
is a story that never stops unfolding.
Slide 166
A great
brand
company
city
is a story that never stops unfolding.
Slide 167
A great
brand
company
city
community
is a story that never stops unfolding.
Slide 168
Thank you!
For a copy of this presentation:
tony@zappos.com
For more information:
www.DowntownProject.com
Slide 169
http://www.youtube.com/watch?v=AF4f3l4a4_A

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