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In this video tutorial, the speaker shares their experience of initially not knowing what a proposal was when first asked by a client. The tutorial emphasizes the importance of two key documents for freelancers: proposals and contracts. While a separate video on contracts is referenced, the focus here is on proposals. A proposal serves to outline the services offered to the client and the associated costs. It acts as a formal document to ensure clarity and mutual understanding between the freelancer and client regarding the service and investment, especially if details were discussed earlier in a phone call.