Sorry for such a silly question, but I don't see the option to tell the world that I am available to receive chat requests.
Do you mean to auto-open chat when you are available so users see you are online?
By default widget shows the status of the live agent right inside widget with red or green dot.
Hi Stas. I must be doing something wrong, but when I log in to my demo environment/portal, chat is not working. I get the pop-up box at the bottom of the web browser, but as an end-user, not agent, it thinks that there is no one available to take a chat
I don't see where, in the agent side of things to say "Hey, I can take your chat message. I am available"
You would need to use any IM client that supports ejabberd protocol. Did you check following instructions ?
In order to get online in chat, please install instant messenger.
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