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ZAPPOS.COM
DELIVERING
HAPPINESS
DOWNTOWN PROJECT
The Long Now Foundation - 4.22.14
A BIT ABOUT ME (TONY)
1994-1995: Pizza business in college
A BIT ABOUT ME (TONY)
1994-1995: Pizza business in college
1996-1998: LinkExchange (online advertising) Sold to Microsoft for
$265 million
A BIT 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.
A BIT 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.
A BIT 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
A BIT 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 $1.2 billion
2010: NYT bestseller Delivering Happiness published
The Power of WOW
„01 „02 „06„03 „04 „05 „07„00 „08
GrossSales$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
HAPPINESSCUSTOMERS & 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
BUILDING GREAT
INGREDIENT #1
Don‟t make your core values
just a meaningless plaque on the wall…
CULTURE
COMMITABLE CORE
VALUES
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
“Be real and you have nothing to fear”
Don‟t try to be someone you are not
Parades at Zappos…
YOUR
CULTUREIS YOUR BRAND
“That‟s great…
“That‟s great…
but it would
never work at my
company…”
ALIGNMENT
It doesn‟t matter what your core values
are…as long as you commit to them.
INGREDIENT #2
VISION
“Whatever you‟re thinking, think
bigger.”
Does the vision have meaning?
Chase the vision, not the money…
Sean Combs aka “Puff
Daddy” to rapper Biggie
Smalls aka “Notorious B.I.G.”
in Notorious
Don‟t chase the paper,
chase the dream.”
ENTREPRENEURS
“What would you be
passionate about doing for 10
years even if you never made
a dime?”
EMPLOYEES
What‟s the larger vision and
greater purpose in their work
beyond money or profits?
MOTIVATION
MOTIVATION
VS
MOTIVATION
INSPIRATIO
VS
VISION &
CULTURE
PASSION &
PURPOSE
INSPIR
E
EVOLVING
VISION & BRAND AT
ZAPPOS.COM
1999 Selection
2003 Customer Service
2005 Culture and core values as our platform
2007 Personal Emotional Connection
2009 Delivering Happiness
Clothing
Customer Service
Company Culture
“a great brand is… ______”
WHAT‟S
NEXTDELIVERING HAPPINESS
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
http://www.eatinglv.com/wordpress/wp-content/gallery/odettedowntown/chinatown-038-large.jpg
DOWNTOWN VEGAS
FREMONT EAST
DOWNTOWN VEGAS
FREMONT EAST
http://www.lucyvegas.com/sites/default/files/griffin5.jpg
DOWNTOWN VEGAS
FREMONT EAST
http://roadjournals.viamagazine.com/wp-content/uploads/2011/05/The-Beat-Coffeehouse.jpg
DOWNTOWN VEGAS
FREMONT EAST
DELIVERING
HAPPINESSWHAT‟S NEXT?
Clothing
Customer Service
Company Culture
DELIVERING
HAPPINESSWHAT‟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 “COMMUNITY”
DOWNTOWN PROJECT
REFRAMING “COMMUNITY”
• COLLISIONS
DOWNTOWN PROJECT
REFRAMING “COMMUNITY”
• COLLISIONS
• CO-LEARNING
DOWNTOWN PROJECT
REFRAMING “COMMUNITY”
• COLLISIONS
• CO-LEARNING
• CONNECTEDNESS
DOWNTOWN PROJECT
REFRAMING “COMMUNITY”
• COLLISIONS
• CO-LEARNING
• CONNECTEDNESS
• DENSITY
DOWNTOWN PROJECT
REFRAMING “COMMUNITY”
• COLLISIONS
• CO-LEARNING
• CONNECTEDNESS
• DENSITY
• DIVERSITY
Accelerating
Collisions, Co-Learning, and Connectedness
THE BIG BET
Accelerating
Collisions, Co-Learning, and Connectedness
…will lead to…
Happiness, Luckiness, Innovation, and
Productivity
THE BIG BET
ROC
ROI
VS
Instead of maximizing short-term ROI
(Return On Investment)…
ROC
ROI
VS
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
ROC
ROI
VS
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Community)
ROC
ROI
VS
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Community & Return on
Collisions)
ROC & ROL
ROI
VS
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
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
ROI
VS
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
CHECK CASHING
CHECK CASHING
SARAH
SARAH
SARAH
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
PROJECT 100
PROJECT 100
COWORKING
https://foursquare.com/v/work-in-progress/4c77e2499f51a0935f6cb627/photos?openPhotoId=523b8f7211d2d802c3ba1d40
COWORKING
https://foursquare.com/v/work-in-progress/4c77e2499f51a0935f6cb627/photos?openPhotoId=5196bb0f498eb4bdee4082f1
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 (FORMER CASINO)
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
GOLD SPIKE COWORKING
LOUNGE
LEARNING VILLAGE
LEARNING VILLAGE
LEARNING VILLAGE
https://foursquare.com/v/learning-village/51c4ebf5454a6e38af8a9e85/photos?openPhotoId=51e08991498efac3d12b7387
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
Productivity and innovation per resident
increases by 15%
(But not true for companies)
Accelerate serendipity > Accelerate learning
>
Accelerate productivity and innovation
WHEN CITIES DOUBLE IN
SIZE
1. Residential density of 100 residents/acre
2. Street-level activity for residents to collide
3. Culture of openness, collaboration,
creativity, and optimism
3 INGREDIENTS FOR
SERENDIPITY
Maximize serendipitous interactions
Density in the office
Density in the city
Collisions vs. convenience
HOW TO ACCELERATE
LEARNING & INNOVATION
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
OUR SECRET WEAPON
http://static3.vipasuite.com/resources/dyn/images/459355w783h429s185b/_fn/ogden-3.jpg
LEARNINGS FROM TED,
SUMMIT SERIES, SXSW,
BIF…
Curated Content
Serendipity
Learning
Connections
Community
DOWNTOWN VEGAS
EVERY DAY
Curated Content
Serendipity
Learning
Connections
Community
Fremont St. & Las Vegas
Blvd.
Fremont St. & Las Vegas
Blvd.
INSPIRE THEATER
INSPIRE THEATER
INSPIRE THEATER
INSPIRE THEATER
INSPIRE THEATER
INSPIRE THEATER
INSPIRE THEATER
INSPIRE THEATER
DOWNTOWN VEGAS
MONTHLY CADENCE
Week 1 – First Friday Week
DOWNTOWN VEGAS
MONTHLY CADENCE
Week 1 – First Friday Week
Week 2 – Tech Week
DOWNTOWN VEGAS
MONTHLY CADENCE
Week 1 – First Friday Week
Week 2 – Tech Week
Week 3 – Fashion Week
DOWNTOWN VEGAS
MONTHLY CADENCE
Week 1 – First Friday Week
Week 2 – Tech Week
Week 3 – Fashion Week
Week 4 – Catalyst Week
DOWNTOWN VEGAS
MONTHLY CADENCE
What is the value of a resident that is out
and about in the neighborhood?
RETURN ON
COLLISIONSROC
What is the value of a resident that is out
and about in the neighborhood?
3-4 hours/day
RETURN ON
COLLISIONSROC
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
COLLISIONSROC
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
COLLISIONSROC
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
RETURN ON
COLLISIONSROC
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
What is the value of a purposeful visitor that
contributes to community?
RETURN ON
COLLISIONSROC
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
RETURN ON
COLLISIONSROC
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
RETURN ON
COLLISIONSROC
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
COLLISIONSROC
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
COLLISIONSROC
RETURN ON
COLLISIONSROC
“SUBSCRIB
E”
1. 100 residents per acre
2. Street-level activity for residents to
collide
3. Culture of openness, collaboration,
creativity, and optimism
RETURN ON
COLLISIONSROC
1. 100 residents per acre
2. Street-level activity for residents to
collide
3. Culture of openness, collaboration,
creativity, and optimism
RETURN ON
COLLISIONSROC
100,000
RETURN ON
COLLISIONSROC
100,000 “collisionable”
RETURN ON
COLLISIONSROC
100,000 “collisionable” community
RETURN ON
COLLISIONSROC
100,000 “collisionable” community hours
RETURN ON
COLLISIONSROC
100,000 “collisionable” community hours
per
RETURN ON
COLLISIONSROC
100,000 “collisionable” community hours
per acre
RETURN ON
COLLISIONSROC
100,000 “collisionable” community hours
per acre per
RETURN ON
COLLISIONSROC
100,000 “collisionable” community hours
per acre per year
RETURN ON
COLLISIONSROC
100,000 “collisionable” community hours
per acre per year
RETURN ON
COLLISIONSROC
2.3 COLLISIONABLE
HOURS
PER SQUARE FOOT
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?
THE BIG BET
3 GUIDING PRINCIPLES
The Long Now Foundation - 4.22.14
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.
is a story that never
stops unfolding.
A GREAT
BRAND
COMPANY
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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