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In this video, Mitchell Losey discusses the importance of contracts for photography and video businesses. He addresses the common scenario where new business owners face awkwardness regarding payment with clients, especially when pricing and services haven't been clearly discussed. Mitchell emphasizes the need for establishing terms upfront to avoid confusion and discomfort when discussing payment after the work is completed. He highlights that failing to address payment specifics can lead to uncomfortable situations where the service provider must bring up compensation post-project completion, which can feel awkward and challenging.