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Jennifer from Jenniferborn.com discusses the importance of explaining design approval to clients using a story about a busy client named Michael. Design approval signifies the completion of the design process and the readiness to hand off the project to the development team. It is essential to confirm design approval with the client to avoid any additional revisions. Jennifer emphasizes the need to set clear boundaries with clients regarding design revisions within the contract to avoid misunderstandings. In the case of Michael, despite receiving design approval, he requested more revisions after showing the approved drafts to a friend. Setting clear expectations and communication with clients is crucial in managing design approval effectively.