Most consumers assume real estate agents build their business through relationships, local knowledge, and referrals. Many do. Others operate very differently.
For years, scores of agents have relied heavily on purchased leads from third-party companies like Zillow, Trulia, etc., often at significant monthly cost. The consumer rarely sees this distinction and likely doesn’t know they are being sold to the highest bidder, yet it quietly shapes how the business operates. Is that approach inherently wrong? Or is it simply a reflection of how the business is structured? And, if structure drives behavior, who is actually in control?
Over time, most agents settle into one of two approaches. Some build their business deliberately through repeat clients, referrals, and a strong local presence. Work compounds and momentum builds. Decisions become less reactive. Others depend primarily on purchased inquiries from large platforms or lead-generation companies. Volume replaces depth and speed replaces patience. Replacement becomes constant. So which approach allows for discretion? Which one allows for longevity?
Both approaches can produce transactions. I believe only one reliably produces stability. Stability, after all, is not accidental. It is designed.
Agents typically turn to paid leads for one of two reasons. The first is speed. Purchased leads create immediate activity, which can feel reassuring, particularly early in a career where the agent is only paid when a transaction successfully closes. The second is structural—whether they know it or not. Many brokerages do not provide clear systems, practical training, or tools that help agents consistently generate their own business. When structure is absent, agents fill the gap themselves. Paid leads become the default. But when a shortcut becomes a dependency, who is really benefiting?
From the consumer’s perspective, agents often appear interchangeable. What is less visible is how an agent’s business is fueled. An agent dependent on purchased leads must continually replace that flow. That reality influences how many clients are handled at once, how transactions are prioritized, and how much time is spent prospecting versus advising. Does a client notice when a fiduciary advisor has time to think? Does trust form differently when urgency is removed?
The brokerage plays a larger role in this dynamic than is often acknowledged. Beyond licensing and compliance, a brokerage shapes how agents think about building a business. In environments where systems, skill development, and accountability are emphasized, agents are less dependent on outside lead sources and more focused on serving clients well. In environments where those elements are absent, volume often replaces strategy. So, which environment produces dedicated professionals, and which produces transactions?
For agents, how business is generated quietly determines the ceiling of their career. For consumers, it provides useful context when choosing representation. Asking an agent how they typically earn their business through referrals, repeat clients, or purchased leads is a reasonable question. What does the answer reveal? And what does it suggest about how that agent will approach your transaction? In my opinion, these are more important questions than the ubiquitous: how many homes have you sold in my subdivision and how many IG followers do you have?
The strongest real estate businesses are rarely built in a hurry. They are built intentionally, with structure and alignment. They do not rely on constant lead replacement. They do not operate in perpetual urgency. They do not confuse activity with value. The question for agents is whether their current environment reinforces that model or quietly works against it. The question for clients is whether the advice they receive reflects patience and judgment, or speed and volume. Over time, the distinction becomes clear.
John Donati is a real estate broker, developer, and operator based in the St. Louis metropolitan area. He serves as Vice President of Brokerage at MORE, REALTORS, where he continues to represent clients in the purchase and sale of residential real estate, and is the founder and CEO of SteelHaven Homes, a residential development platform focused on disciplined execution, durability, and long-term value. His background spans industrial project and construction management, public relations, and integrated marketing, experience he has translated into residential brokerage and development through an emphasis on systems thinking, clear communication, and a client experience informed by hospitality rather than transaction volume. He leads a multidisciplinary team at SteelHaven Homes and works across brokerage, development, and title operations, giving him a practical perspective on how incentives, structure, and execution intersect to shape outcomes well before a transaction reaches the market. Outside of work, he values family, cooking, and the company of dogs, interests that mirror his belief that well-built homes and well-run organizations share the same foundations.
John Donati
🌐 JohnDonati.com
📧 john.donati@stlre.com
📞 636.669.5050
