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Andy from Blogger.com demonstrates how to create a template in DocHub in this video tutorial. He shows two methods: creating a template from an existing document and creating one from scratch. By converting a document into a template, you can avoid retyping information for similar documents in the future. Andy explains the steps to convert a document into a template by selecting the document, clicking "more," and then "convert to template." This allows for easy customization and reuse of documents.