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In this tutorial, Mike Murphy demonstrates three methods to add text in ScreenFlow 10. The first method involves using the inspector panel: click on 'T' for text (or use the Command + 8 shortcut) to access text and titles properties. From there, select the plus sign in the dropdown to add a text box to the canvas. The second method is through the top menu by clicking on 'Insert' and then 'Text Box', allowing you to type directly into a new text box on the canvas. For customizing text, return to the inspector panel to adjust font, size, colors, and styles as desired.