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In the video tutorial, the speaker shares a personal experience about the first time they were asked to send a proposal to a client, emphasizing the importance of understanding what a proposal is. For freelancers, two key documents are essential: a proposal and a contract. The speaker mentions that they have a separate video on contracts. A proposal is defined as a formal document outlining the services being offered and their associated costs, ensuring both the freelancer and client are aligned on expectations. The speaker highlights that this information may have already been discussed during a phone call but is formalized in the proposal.