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Christa Hughes, founder of a nerds WorldCom, discusses the importance of a Statement of Work (SOW) for freelance graphic designers and web developers. SOW is a detailed document that outlines project scope, deliverables, timelines, and costs. Previously, contracts with clients were not detailed enough, leading to issues. Including a SOW ensures clear communication and expectations. Hughes emphasizes the significance of having a well-defined SOW to avoid misunderstandings and disputes in projects.