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An SEO proposal is a critical tool for growing agencies to attract new clients, serving as a sales pitch that outlines capabilities and builds trust. The proposal should clarify what the agency can offer and set clear expectations for clients. It is essential to create a standout document, especially since potential clients may be considering multiple agencies. The video tutorial, presented by Rondel from Agency Analytics, discusses how to construct an effective SEO proposal and emphasizes its importance in the client acquisition process. Additionally, a free template is provided for viewers to utilize in their proposals.