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In this video, the speaker shares their experience of creating proposals as a freelancer, emphasizing the importance of two key documents: proposals and contracts. While a previous video covered contracts, the focus here is on proposals. A proposal is defined as a formal outline that details the services offered and their associated costs, ensuring clarity between the freelancer and the client. The speaker highlights that proposals often summarize discussions held over the phone, providing a structured means for both parties to agree on the work and investment involved.