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In this video tutorial, Drew Bowers Auger discusses the importance of using contracts in consulting. He emphasizes signing a consulting agreement to prevent disputes regarding billing and engagement. Key elements of the agreement include clarifying that the client is hiring you as an independent contractor, specifying your payment amount and frequency, acceptable payment methods, and obtaining signatures from both parties. He suggests using consulting agreement templates and advises that contracts may often favor the party that drafted them. Ideally, clients should sign your contract; if you must sign theirs, review it carefully to ensure the payment terms and project details are clear. Discuss any disagreements or uncertainties with the client.