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In this video tutorial, the speaker discusses the importance of two essential documents for freelancers: proposals and contracts. The speaker shares their initial confusion about creating a proposal when first asked by a client. A proposal is defined as a formal document that outlines the services being offered and their associated costs. It serves to clarify discussions that may have occurred during initial conversations, ensuring that both the freelancer and the client are aligned on expectations and investment. The speaker, who identifies as a writer, emphasizes the need for a proposal to formalize the agreement before starting work. They also mention that a separate video on contracts is available.