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In this video, the speaker discusses the necessity of contracts for agency operations, addressing common misconceptions, particularly among beginners. They emphasize that many people believe contracts guarantee payment and secure agreements, but in reality, contracts can often be ineffective and may not hold up in practice. The speaker notes that while contracts are important and advisable to have, they do not always provide the protection or assurance that clients will comply. They plan to share tangible examples to illustrate these points throughout the video.