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In the video, the speaker shares their experience of initially being unsure about creating a proposal when first requested by a client. They emphasize the importance of two key documents for freelancers: a proposal and a contract, with a mention of a separate video on contracts. The speaker clarifies that a proposal outlines the services being offered and their associated costs, serving as a formal agreement to ensure both parties understand the project scope and financial commitment. They conclude by highlighting the need for clarity in communication, referring to their profession as a writer to illustrate the point.