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In this video, Mitchell Losey discusses the importance of contracts in photography and videography businesses. He addresses the common scenario where new business owners face awkwardness regarding payment and client expectations. Often, there's a lack of communication about pricing and services before the work is completed. This can lead to uncomfortable situations when it's time to discuss payment after the project is done. Losey emphasizes the necessity of establishing clear agreements and discussing financial aspects upfront to avoid confusion and ensure both parties are on the same page regarding services and compensation.