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In this video, Drew Bowers discusses the importance of using consulting agreements to avoid disputes over billing and engagement. Key points to cover in a consulting agreement include the client hiring your business as an independent contractor, payment terms, payment methods, and signatures from both parties. It is recommended to use templates for consulting agreements, which may be biased toward the party that drafted it. It is preferable for clients to sign your contract, but if you must sign theirs, review it carefully and clarify any issues regarding rates, billing frequency, and project completion with the client.