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In this video, Mitchell Losey discusses the importance of contracts for photographers and videographers just starting their businesses. He highlights the common scenario where a photographer or videographer begins a project without discussing payment or client expectations. This can create awkwardness when it comes time to ask for payment after completing the work, especially if the parties haven't clearly established the service terms. Mitchell emphasizes the necessity of communication regarding prices and expectations upfront to avoid confusion and ensure a professional relationship with clients. He encourages viewers to prioritize contract discussions to facilitate smoother transactions.