UW–Madison users are not able to use the Create a Contact function. You'll need to upload or use a Form instead.

When I search for the new contact's email address in the Audience>Contacts feature area, it says, "No contacts found." But when I try to add the contact, it says it's already in use. Help!?

If you cannot see/act on the contact that already exists, it is likely because they don't have your Contact Label. You cannot add a single contact in the Audience>Contacts feature area because there is no mechanism to add your Contact Label there.

Options:

1. Upload the contact via the standard contact upload process (see Uploading Contacts To Make a Shared List). Be sure to include the column with your Contact Label! 
   If this seems a bit much for just one contact, a common practice is to keep a running Excel Upload sheet of individual contacts that need to be added. Collect others as time goes along and then upload the sheet all at once before your next mailing, or at another appropriate/convenient time.  
   
   
2. Use your department's Subscription management Landing Page/Form to add one contact. The form will add your Contact Label via a hidden field during the submission process.
   If you do not have a subscription management Landing Page and Form, and this topic comes up very frequently, the Marketing Automation team can create an internal form for you to use in these situations.
   
   If you use the subscription form method, make sure you are bringing the Email Group subscribers into your Segment. Here's how to Adding Email Group Subscribers to a Segment.
   
   *Note The subscription form is not usually configured to add contacts to a specific Shared List unless you've asked for this specifically in the set up process.