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An SEO proposal is a crucial tool for growing agencies to secure new clients by showcasing their suitability for potential projects. It serves as a sales pitch, helping agencies highlight their capabilities and build trust. Prospective clients often compare multiple agencies, making a well-crafted proposal essential for standing out. The video tutorial provides guidance on creating an effective SEO proposal, including its length and how to structure it. Viewers are encouraged to like, subscribe, and stay tuned for a free template to assist in writing their own SEO proposal. Key elements include articulating what the agency can offer and setting clear expectations for the client.