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In this video tutorial, the importance of having a service agreement is highlighted for newbies who have landed their first contract. When hired, clients typically request various documents such as insurance information, EIN number, and W9 form. It is emphasized that while newbies are eager to start work and make money, it is crucial to remember to protect themselves by ensuring they have a service agreement in place. This agreement helps define the terms of the services provided and protects both parties involved.