A:

A rainmaker is any person who brings clients, money, or respect to an organization based solely on his or her association. Traditionally, the term "rainmaker" applied to members of the legal profession, like attorneys-turned-politicians who retired from public life (forcibly or otherwise) and went on to practice law at nationally-recognized firms.

Over time, the term gained usage in many other industries and activities, including investment banking, political campaigning and public speaking. For example, former U.S. Vice President Al Gore's association with the environmental movement caused numerous venture capital firms to add Gore as a partner in hopes that his "rainmaking" abilities would help them raise hundreds of millions of dollars for alternative energy initiatives.

In everyday usage, the term "rainmaker" can apply to anyone - from the salesperson who always finishes first in sales to the engineer who consistently finds innovative ways to present a company's products. In the purest sense, a rainmaker is a difference maker.

This question was answered by Justin Bynum.

RELATED FAQS

  1. How do you find the break-even point using a payback period?

    Understand what a company's breakeven point is and what its payback period is. Learn why a company would want to track both ...
  2. What is considered a reasonable interest rate for a syndicated loan?

    Discover how syndicated loans work, why they are beneficial for businesses, and what is considered a reasonable interest ...
  3. How strong are the barriers to entry for new companies in the telecommunications ...

    Discover the significant barriers to entry, such as the necessity for high capital expenditures, for new companies in the ...
  4. What are the pros and cons of downround financing?

    Read about the pros and cons of down round financing for a company that has seen its valuation decrease, and see how it impacts ...
RELATED TERMS
  1. Financial Singlularity

    A financial singularity is the point at which investment decisions ...
  2. Open Architecture

    The option offered by an investment firm to let its clients invest ...
  3. Path To Profitability (P2P)

    A clearly defined route to profitability as described in a business ...
  4. Fintech

    Fintech is a portmanteau of financial technology that describes ...
  5. Endowment Effect

    The endowment effect describes a circumstance in which an individual ...
  6. Anchoring and Adjustment

    Anchoring and adjustment is a cognitive error described by behavioral ...

You May Also Like

Related Articles
  1. Professionals

    Are These the 10 Best Stocks in the ...

  2. Investing News

    The Financial Singularity Will Destroy ...

  3. Professionals

    SEC to Advisors: Implement Cybersecurity ...

  4. Professionals

    The Most Popular ETFs with Financial ...

  5. Retirement

    This is the Top Fear of Gen X, Millennial ...

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!