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In this video tutorial, Austin Kelly discusses how to write a personal reference letter. He emphasizes that one should only accept a request to provide a character reference if they know the person well enough to speak positively about their traits relevant to the job. Key elements to include in a personal reference letter are: 1) Explanation of the relationship with the candidate (e.g., volunteering together or neighbor), 2) Duration of acquaintance (e.g., knowing someone for six years, including time in business school), and 3) Positive personal qualities that highlight the candidate's strengths. Overall, the focus is on crafting a personalized and supportive reference.