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In this HubSpot tutorial, Bob from Webdue explains how to create an email template in HubSpot. Users can save repetitive email content and personalize it for recipients. To create a template, navigate to "Conversations," select "Templates," and click "New Template." Users can choose to create from scratch, name the template, and set privacy options. Templates can be organized into folders, and users can format the email body using various editing tools. Text formatting, hyperlinking, and image insertion are facilitated through options in the editing window, allowing customization of font style, size, alignment, and image size.