Smart Proposal acts like a traditional “mediator’s proposal”: it generates a settlement proposal number that the parties can secretly accept or reject.
If both parties accept the number, it becomes the dealmaking number. If either party rejects the number, Backchannel informs the parties only that the number was rejected (so a rejecting party will not know whether the other party accepted or rejected the number).
This Guide will go over Smart Proposal’s rules and answer common questions.
Rules and Steps
Step 1: Request Smart Proposal
Smart Proposal becomes available if the parties’ First Bids do not match. At that point, either side can click the Request Smart Proposal button on the Bidding screen.
As soon as one party requests a Smart Proposal, Live Bidding pauses until the Smart Proposal request is resolved.
Both parties must agree to receive a Smart Proposal. If the other party rejects the request, bidding resumes as normal. Either party can request a Smart Proposal at another time.
If both parties agree to receive a Smart Proposal, the process goes to Step 2.
Step 2: Backchannel determines whether it can produce a Smart Proposal. If it can, it will calculate a Smart Proposal.
If both parties agree to receive a Smart Proposal, Backchannel will check the parties’ Bids.
If the parties’ Bids are too far apart, Backchannel will reject the request, and the parties can try again at another time. If the Bids are close enough to warrant a Smart Proposal, Backchannel will generate a proposal number.
Note: The Smart Proposal is not simply the middle of the two Bids. Rather, Smart Proposal uses a proprietary system to calculate a proposal. This keeps each parties’ Bids secret and increases the likelihood of a deal.
The Smart Proposal will appear on your Bidding page.
Step 3: Accept or Reject the Smart Proposal
Once the Smart Proposal is generated, each party will have seven days to accept or reject the proposal.
If both parties accept the proposal within seven days, then that becomes the dealmaking number and is binding like any other accepted offer or demand. No Olive Branch Bonus applies to this number.
If either party rejects the proposal or the time expires, then the proposal is rejected. Backchannel will notify you only that the proposal is rejected. Backchannel will not tell you whether the other side accepted or rejected the proposal.
Backchannel will produce only one Smart Proposal per session. Once it produces one, it will not produce another for that session.
FAQs
Does Smart Proposal choose a number in the middle of the two Bids?
No. Smart Proposal uses a proprietary system to calculate the proposal. A Smart Proposal number will be between the two Bids, but it will not necessarily be in the middle of the Bids.
How many times can I request a Smart Proposal?
You can request a Smart Proposal as many times as you want, until Backchannel generates a proposal. Once it does, that will be the only proposal for this session. To receive a different Smart Proposal for the same case, you must start a new Backchannel session.
Is my response to the Smart Proposal shared with my counterparty?
No, your response to the Smart Proposal is not shared with the other party. Obviously, if the Smart Proposal results in a deal, your counterparty will know you accepted, and you will know they accepted. But, if either party rejects the proposal, both parties are informed only that the proposal has been rejected, and Live Bidding re-commences.