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An SEO proposal is crucial for agencies to showcase their qualifications and secure new clients. It serves as a sales pitch, explaining what services the agency can provide and why the client should choose them over competitors. Prospective clients often approach multiple agencies, making a strong proposal vital to stand out and establish clear expectations regarding services and timelines. The video offers insights from leading agencies on writing effective proposals and includes a free template for viewers. To learn more about creating an impactful SEO proposal, viewers are encouraged to stay tuned until the end.