Rainmaker

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DEFINITION of 'Rainmaker'

A broker or financial advisor who brings a large number of wealthy clients to the firm he or she works for. Rainmakers are skilled at expanding their client base and increasing their assets under management. As such, they are typically highly compensated. Also, because of their proven ability to generate revenue for one firm, they may be heavily recruited by competing firms and offered significant financial incentives to make the switch.

INVESTOPEDIA EXPLAINS 'Rainmaker'

If a rainmaker leaves a firm and takes his or her clients, the firm can suffer a significant loss of future revenue, as well as the loss of reputation that comes with losing a well known broker/advisor. Rainmakers often have teams of brokers or advisers who work under them, and these teams may be part of a package deal when a rainmaker changes firms, which adds to their former firm's losses.

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RELATED FAQS
  1. What is a rainmaker?

    A rainmaker is any person who brings clients, money, or respect to an organization based solely on his or her association. ... Read Full Answer >>
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    The difference between a fee-based adviser and a commission-based adviser is that the former collects a flat fee for investment ... Read Full Answer >>
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    The variance between a security's bid price and its ask price, also known as the bid-ask spread, represents the different ... Read Full Answer >>
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