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ZAPPOS.COM 
DELIVERING 
HAPPINESS 
DOWNTOWN PROJECT
The Power of WOW 
‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 
Gross Sales $MM 
$1,000 
800 
600 
400 
200
THE #1 PRIORITY
THE #1 PRIORITY
CULTURE 
THE #1 PRIORITY
CLOTHING, CUSTOMER SERVICE, 
CULTURE 
CULTURE 
CUSTOMER EXPERIENCE 
CLOTHING
CLOTHING
CUSTOMER 
SERVICE
CULTURE
CLOTHING, CUSTOMER SERVICE, 
CULTURE 
CULTURE 
CUSTOMER EXPERIENCE 
CLOTHING
DELIVERING 
CHUASTPOPMIENRSE &S ESMPLOYEES 
“People will forget what you said. 
People will forget what you did. 
But people will never forget 
how you made them feel.” 
-MAYA ANGELOU
WHAT’S 
DELIVNERIENG XHAPTPINESS 
Clothing 
Customer Service 
Company Culture 
“a great brand is… ______”
ZAPPOS.COM 
http://media.glassdoor.com/m/7b/2c/00/f6/entrance-to-the-zappos-com-headquarter-office-in-henderson-nv-photo-by.jpg
LAS VEGAS CITY HALL 
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
LAS VEGAS CITY HALL
LAS VEGAS CITY HALL
APPLE 
http://www.techzek.com/wp-content/uploads/2011/09/apple_campus-1.jpg
NIKE 
http://standardatl.com/home/wp-content/uploads/2010/07/Nike_Campus_Tour_01.jpg
GOOGLE 
http://static.panoramio.com/photos/original/400729.jpg
DOGGY DAY CARE 
http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
NYU CAMPUS 
http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
DOWNTOWN VEGAS 
FREMONT EAST 
http://www.eatinglv.com/wordpress/wp-content/gallery/odettedowntown/chinatown-038-large.jpg
DOWNTOWN VEGAS 
FREMONT EAST 
http://www.lucyvegas.com/sites/default/files/griffin5.jpg
DOWNTOWN VEGAS 
FREMONT EAST
DOWNTOWN VEGAS 
FREMONT EAST 
http://roadjournals.viamagazine.com/wp-content/uploads/2011/05/The-Beat-Coffeehouse.jpg
DELIVERING 
HAPPINESS WHAT ’ S NEXT ? 
Clothing 
Customer Service 
Company Culture
DELIVERING 
HAPPINESS WHAT ’ S NEXT ? 
Clothing 
Customer Service 
Company Culture 
Community
DOWNTOWN PROJECT 
COLLISIONS 
CO-LEARNING 
CONNECTEDNESS
DOWNTOWN PROJECT 
$350M 
$50M – Small businesses 
$50M – Tech Startups 
$50M – Education, Arts, Culture 
$200M – Real Estate
DOWNTOWN PROJECT 
GOALS
DOWNTOWN PROJECT 
GOALS 
• Live/Work/Play – Walking Distance
DOWNTOWN PROJECT 
GOALS 
• Live/Work/Play – Walking Distance 
• The Most Community-Focused 
Large City in the World
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
DOWNTOWN PROJECT 
REFRAMING “COMMUNI TY”
DOWNTOWN PROJECT 
REFRAMING “COMMUNI TY” 
• COLLISIONS
DOWNTOWN PROJECT 
REFRAMING “COMMUNI TY” 
• COLLISIONS 
• CO-LEARNING
DOWNTOWN PROJECT 
REFRAMING “COMMUNI TY” 
• COLLISIONS 
• CO-LEARNING 
• CONNECTEDNESS
DOWNTOWN PROJECT 
REFRAMING “COMMUNI TY” 
• COLLISIONS 
• CO-LEARNING 
• CONNECTEDNESS 
• DENSITY
DOWNTOWN PROJECT 
REFRAMING “COMMUNI TY” 
• COLLISIONS 
• CO-LEARNING 
• CONNECTEDNESS 
• DENSITY 
• DIVERSITY
THE BIG BET 
Accelerating 
Collisions, Co-Learning, and Connectedness
THE BIG BET 
Accelerating 
Collisions, Co-Learning, and Connectedness 
…will lead to… 
Happiness, Luckiness, Innovation, and 
Productivity
ROI 
VS 
ROC 
Instead of maximizing short-term ROI 
(Return On Investment)…
ROI 
VS 
ROC 
Instead of maximizing short-term ROI 
(Return On Investment)… 
We focus on maximizing long-term ROC
ROI 
VS 
ROC 
Instead of maximizing short-term ROI 
(Return On Investment)… 
We focus on maximizing long-term ROC 
(Return On Community)
ROI 
VS 
ROC 
Instead of maximizing short-term ROI 
(Return On Investment)… 
We focus on maximizing long-term ROC 
(Return On Community & Return on 
Collisions)
ROI 
VS 
ROC & ROL 
Instead of maximizing short-term ROI 
(Return On Investment)… 
We focus on maximizing long-term ROC 
(Return On Community & Return on 
Collisions) 
and institutionalizing ROL
ROI 
VS 
ROC & ROL 
Instead of maximizing short-term ROI 
(Return On Investment)… 
We focus on maximizing long-term ROC 
(Return On Community & Return on 
Collisions) 
and institutionalizing ROL 
(Return On Luck)
ROI 
VS 
ROC & ROL 
Instead of maximizing short-term ROI 
(Return On Investment)… 
We focus on maximizing long-term ROC 
(Return On Community & Return on 
Collisions) 
and institutionalizing ROL 
(Return On Luck) – Accelerating Serendipity
DOWNTOWN PROJECT 
$350M 
$50M – Small businesses 
$50M – Tech Startups 
$50M – Education, Arts, Culture 
$200M – Real Estate
$50M SMALL BUSINESS
$50M SMALL BUSINESS 
Criteria
$50M SMALL BUSINESS 
Criteria 
Owner Operated - Passionate
$50M SMALL BUSINESS 
Criteria 
Owner Operated - Passionate 
Helps Promote Community & Collisions
$50M SMALL BUSINESS 
Criteria 
Owner Operated - Passionate 
Helps Promote Community & Collisions 
Execution Ability
$50M SMALL BUSINESS 
Criteria 
Owner Operated - Passionate 
Helps Promote Community & Collisions 
Execution Ability 
Sustainable
$50M SMALL BUSINESS 
Criteria 
Owner Operated - Passionate 
Helps Promote Community & Collisions 
Execution Ability 
Sustainable 
Unique or First or Best at Something
$50M SMALL BUSINESS 
Criteria 
Owner Operated - Passionate 
Helps Promote Community & Collisions 
Execution Ability 
Sustainable 
Unique or First or Best at Something 
Story-worthy
NATALIE
NATALIE
NATALIE
NATALIE
NATALIE
NATALIE
SHIPPING CONTAINERS
CONTAINER PARK
CONTAINER PARK
CONTAINER PARK
CONTAINER PARK
LVCK
LVCK
LVCK
SHIPPING CONTAINERS
MEDICAL CLINIC
$50M TECH STARTUPS
$50M TECH STARTUPS 
https://twitter.com/VegasKramer/status/330833896574951424/photo/1
$50M TECH STARTUPS
SHIFT / PROJECT 100
SHIFT / PROJECT 100
GOLD SPIKE (FORMER CASINO) 
http://www.yelp.com/biz_photos/gold-spike-hotel-and-casino-las-vegas?select=Zh7ycSGy8xycR7- 
VVqSMlA#vPAm4TwFWc3kw_lM9NJzfQ
GOLD SPIKE (FORMER CASINO) 
http://www.yelp.com/biz_photos/gold-spike-hotel-and-casino-las-vegas?select=Zh7ycSGy8xycR7- 
VVqSMlA#uSzsFfdBhPok_sfEpJk-7Q
GOLD SPIKE COWORKING 
LOUNGE
GOLD SPIKE COWORKING 
LOUNGE 
https://foursquare.com/v/gold-spike/4bd1a8b65e0cce72c9cba184/photos?openPhotoId=51f18e5d498eb74dd6fc3edf
GOLD SPIKE COWORKING 
LOUNGE 
https://foursquare.com/v/gold-spike/4bd1a8b65e0cce72c9cba184/photos?openPhotoId=52099aef11d226362f7930d9
GOLD SPIKE COWORKING 
LOUNGE
http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png
CITY AS A STARTUP 
http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png
$50M EDUCATION, ARTS, 
CULTURE 
http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png
$50M EDUCATION, ARTS, 
CULTURE 
http://photos.lasvegassun.com/media/img/photos/2013/08/27/0827NinthBridge13_t653.JPG?214bc4f9d9bd7c08c7d0f6599bb3328710e01e7b
$50M EDUCATION, ARTS, 
CULTURE
$50M EDUCATION, ARTS, 
CULTURE 
http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg
$50M EDUCATION, ARTS, 
CULTURE 
http://mikerossart.net/images/mikeross_enter.jpg
$50M EDUCATION, ARTS, 
CULTURE 
http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg
LIFE IS BEAUTIFUL
LIFE IS BEAUTIFUL
LIFE IS BEAUTIFUL
LIFE IS BEAUTIFUL
LIFE IS BEAUTIFUL
$200M REAL ESTATE
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
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
HOW TO ACCELERATE 
LEARNING & INNOVATION 
Maximize serendipitous interactions 
Density in the office 
Density in the city 
Collisions vs. convenience
LAS VEGAS CITY HALL 
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
DIVERSITY + DENSITY 
1. Zappos employees 
2. Tech Startup Community 
3. Small Business Community 
4. Fashion Community 
5. Art and Music Communities 
6. Other Passion Communities 
7. Local Residents
RETURN ON 
COLLISIONS ROC 
What is the value of a resident that is out 
and about in the neighborhood?
RETURN ON 
COLLISIONS ROC 
What is the value of a resident that is out 
and about in the neighborhood? 
3-4 hours/day
RETURN ON 
COLLISIONS ROC 
What is the value of a resident that is out 
and about in the neighborhood? 
3-4 hours/day 
x 7 days/week
RETURN ON 
COLLISIONS ROC 
What is the value of a resident that is out 
and about in the neighborhood? 
3-4 hours/day 
x 7 days/week 
x 40 weeks/year
RETURN ON 
COLLISIONS ROC 
What is the value of a resident that is out 
and about in the neighborhood? 
3-4 hours/day 
x 7 days/week 
x 40 weeks/year 
= 1000 “collisionable” hours/year
JAKE – FLINT & TINDER 
http://images.fastcompany.com/upload/inline-Made-In-The-USA-Flint-And-Tinder-Undies-And-You-Will-Love-It-b. 
jpg
JAKE – FLINT & TINDER
FASHION INCUBATOR 
STITCH FACTORY
FASHION INCUBATOR 
STITCH FACTORY
RETURN ON 
COLLISIONS ROC 
What is the value of a purposeful visitor that 
contributes to community?
RETURN ON 
COLLISIONS ROC 
What is the value of a purposeful visitor that 
contributes to community? 
12 hours/day
RETURN ON 
COLLISIONS ROC 
What is the value of a purposeful visitor that 
contributes to community? 
12 hours/day 
x 7 days/week
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
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
RETURN ON 
COLLISIONS ROC 
“SUBSCRIB 
E” 
TO DTLV
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
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
100,000 
RETURN ON 
COLLISIONS ROC
RETURN ON 
COLLISIONS ROC 
100,000 “collisionable”
RETURN ON 
COLLISIONS ROC 
100,000 “collisionable” community
RETURN ON 
COLLISIONS ROC 
100,000 “collisionable” community hours
RETURN ON 
COLLISIONS ROC 
100,000 “collisionable” community hours 
per
RETURN ON 
COLLISIONS ROC 
100,000 “collisionable” community hours 
per acre
RETURN ON 
COLLISIONS ROC 
100,000 “collisionable” community hours 
per acre per
RETURN ON 
COLLISIONS ROC 
100,000 “collisionable” community hours 
per acre per year
RETURN ON 
COLLISIONS ROC 
100,000 “collisionable” community hours 
per acre per year 
2.3 COLLISIONABLE 
HOURS 
PER SQUARE FOOT 
PER YEAR
THE BIG BET 
3 GUIDING PRINCIPLES 
Accelerate: 
1. Collisions 
2. Co-Learning 
3. Connectedness 
And everything else will fall into place… 
(productivity, innovation, growth, happiness) 
What will people say about downtown?
ZAPPOS, DELIVERING 
HAPPINESS, DOWNTOWN 
PROJECT
https://www.facebook.com/photo.php?fbid=533076913404671&set=a.429177383794625.90218.427192853993078
50% OF HUMANS LIVE IN 
CITIES 
https://www.facebook.com/photo.php?fbid=533076913404671&set=a.429177383794625.90218.427192853993078
75% WILL LIVE IN CITIES IN 
OUR LIFETIME 
https://www.facebook.com/photo.php?fbid=533076913404671&set=a.429177383794625.90218.427192853993078
THE 4 MINUTE MILE
THE 4 MINUTE MILE
MORE INFO 
For a copy of this presentation: 
tony@zappos.com 
For more information: 
www.downtownproject.com
A GREAT 
BRAND 
is a story that never 
stops unfolding.
A GREAT 
BRAND 
COMPANY 
is a story that never 
stops unfolding.
A GREAT 
BRAND 
COMPANY 
CITY 
is a story that never 
stops unfolding.
A GREAT 
BRAND 
COMPANY 
CITY 
COMMUNITY 
is a story that never 
stops unfolding.
MORE INFO 
For a copy of this presentation: 
tony@zappos.com 
For more information: 
www.downtownproject.com

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