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An SEO proposal is a critical tool for growing agencies to attract new clients by showcasing their value. It serves as a sales pitch outlining services and building trust with potential clients. The proposal should clearly demonstrate what the agency can accomplish and set expectations regarding deliverables and timelines. Agencies are encouraged to differentiate themselves, as clients often compare multiple options. The video includes insights from leading agencies and offers a free template for creating an effective SEO proposal. Viewers are prompted to engage with the content by liking, subscribing, and activating notifications for more digital marketing tips.