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In this segment, the speaker recalls their early experience with client proposals, admitting their initial uncertainty about what a proposal entailed. They emphasize the importance of two key documents for freelancers: a proposal and a contract, with a reference to a separate video on contracts. The proposal is defined as a formal document that outlines the services being offered and the associated costs. It serves to clarify and ensure alignment between the freelancer and the client regarding the proposed services and investment, consolidating discussions that may have occurred during a phone call. The speaker mentions their background as a writer to illustrate their point.