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In the video tutorial, Austin Kelly discusses how to write a personal reference letter. He advises accepting the request only if you know the person well enough to speak positively about their personal traits related to the job. Key elements to include in the letter are the relationship with the candidate (e.g. volunteering together) and the length of time known (e.g. six years, including business school). It is important to highlight the candidate's positive personal qualities in the letter.