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In this video tutorial, Drew Bowers Auger discusses the importance of using contracts in consulting. He emphasizes the need for a consulting agreement to prevent disputes over billing and engagement. Key elements to include are: the client hiring your business as an independent contractor, payment amount and frequency, acceptable payment methods, and signatures from both parties. Sample consulting agreement templates are provided, noting that contracts often favor the party that drafted them. It’s advisable to have clients sign your contract; however, if you must sign theirs, read it carefully to ensure clarity on payment and project terms. Any disagreements or misunderstandings should be addressed with the client.