Allright, let me explain how it works in the paintball world (Ive heard it all before so save the smart comments
I play for a sponsored college team - at competition level so none of this sneaking through the woods BS.)
Ill use Kaylan and myself just as an example.
Im browsing TSL and see that Kaylan has some wheels for sale that I want. I check her feedback and she has 3-4 positive transactions amongst fellow TSL users, and I only have 2, because of her "feedback status" generally, I would be shipping first in a trade - cash always ships first.
After the trade, I leave feedback for Kaylan telling everyone else that the wheels I traded for were awesome, shipped quick blah blah blah and she does the same for me.
This developes reputations for those of us who take advantage of the deals that often occur on such places as TSL.
Feedback rules:
Feedback, good bad or ugly can only be left once per transaction, and only by those who have had transactions with said user
Feedback fraud - not allowed, gets your feedback turned sour by a mod.
Feedback for dealers (IE GS, GG and whoever else may pop up over time) can be left only if a user representing that dealer (Nick T, Dan) has set up such a feedback thread - and again feedback is only left once per transaction.
Asides posting feedback from a trade or sale, the feedback threads are for viewing only, its on the site useres shoulders to keep it this way, but it generally works pretty well - so no useless posts in the feedback section.
And again here is a link to some of my feedback elsewhere - you can get an idea of how it works by just looking through it quickly.
http://www.pbnation.com/showthread.php?p=17276523#post17276523