As others have mentioned, this rule only applies to negotiations where one side is willing to offer more than the other side expects. If you're expecting $150k

As others have mentioned, this rule only applies to negotiations where one side is willing to offer more than the other side expects. If you're expecting $150k and the company only has budget for $120k the opportunity cost of engaging in a lengthy interview process to find that out is rather bad. A better rule of thumb for in-demand professionals (in my experience on both sides of the table) is to do your homework ahead of time, have a realistic understanding of what you're worth and what the company is likely able to offer, and name a price that's a little bit above that. You'll save a lot of time and weed out low-balling recruiters immediately without actually sacrificing much in the way of compensation.