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In this video tutorial, Mitchell Losey discusses the importance of having contracts in place for photography and video businesses. He outlines common scenarios where freelancers and clients engage without clear price discussions, leading to awkward situations after the work is completed. Often, service providers feel uncertain about how to bring up payment, especially when the scope of the project and pricing haven't been addressed upfront. Losey emphasizes the need for clear communication and agreements to avoid discomfort regarding payment and to ensure both parties understand the terms before starting the project. This approach fosters a more professional relationship between freelancers and clients.