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An SEO proposal is a critical tool for growing agencies to attract potential clients, serving as a sales pitch that outlines what the agency can offer and why they should be trusted. The video discusses essential aspects of crafting an effective proposal, including its length and structure. Leading agencies provide insights on how to stand out, emphasizing the importance of setting clear expectations for prospective clients who may be considering multiple agencies. The tutorial also promises a free template to help viewers create their own SEO proposal. Viewers are encouraged to like the video, subscribe, and stay tuned for further tips on digital marketing.