#12 – From the Trenches - From Marketing Agency to MSP – Carlos’ Playbook (Carlos Torres III)

A marketing-agency-turned-MSP founder shares how he’s structuring services, pricing, and profit from day one. If you’re building or rebooting an MSP, this episode shows how to set targets, avoid margin killers, and use agreements the smart way. ✅ Enjoyed this episode?  Like, subscribe, and share your biggest takeaway below.  https://beringmckinley.com/bering-mckinley-podcast-blog  Carlos, co-founder of Monster TechIT and new MSP owner, joins Josh to unpack the journey from creative agency to managed services—and why starting with numbers beats “figure it out later.” They discuss what it takes to separate a marketing arm from an MSP entity, the legal and financial guardrails to protect both businesses, and how to translate brand and community reach into real MSP growth. You’ll hear tactical ways to package services, control scope, and keep profitability front and center in ConnectWise. 👉 Why 42% gross profit and 17% net profit are the MSP’s north stars—and how to manage to them 👉 Agreement Gross Profit (AGP): target 65% and track every minute in PSA to prevent over-delivery 👉 Packaging strategy: keep remediation/projects separate from monthly agreements to avoid MAC (moves, adds, changes) traps 👉 Pricing models that work: per-user guidance, low-base + hourly hybrids, and where hourly shines 👉 Go-to-market edge: applying agency-grade marketing, storefront ideas (e.g., distribution marketplaces), and community presence for faster trust This conversation blends practical finance (AGP math, license pass-throughs), operations (time entry, ticket hygiene), and go-to-market tactics (simple offers, human brand). If you’re aiming to hit your first $1M—and avoid the “race to the bottom”—start here. End with CTA: “Visit https://beringmckinley.com  for more MSP resources.” 🔗 Resources & Links • Carlos Torres III at Monter TechIT: https://monstertechit.com • Bering McKinley MSP Consulting: https://beringmckinley.com ⏱️ Chapters 00:00 – Meet Carlos: from agency to MSP 01:28 – Why separate legal entities for marketing vs. MSP 05:37 – Marketplace/storefront ideas and buyer behavior 10:10 – Avoiding the “race to the bottom” with positioning 11:20 – Hitting $1M: timelines, targets, and mindset 13:38 – Liability lessons from adjacent industries 15:42 – The “new million”: why $2–$3M is the hard part 17:59 – Setting revenue goals and owning the numbers 20:25 – Local market tiers and standing out in El Paso 24:06 – Content, humor, and trust to win MSP buyers 26:37 – Simple sale dynamics: like/trust → buy 29:23 – Run by the numbers: gross vs. net profit 33:20 – Aim for 42% GP and 17% NP (why it matters) 36:16 – Real agreement teardown: $1,250/mo nonprofit 41:00 – AGP math and per-user sanity checks 46:01 – Keep projects separate to prevent scope creep 50:05 – Hourly is not a bad word: hybrid models that work 52:16 – Microsoft licensing realities and risk control 54:04 – Leadership lesson: serve without losing yourself 56:46 – First technical hire: skill vs. attitude 57:18 – Wrap-up 🔍 Primary Keywords MSP pricing, managed services profitability, agreement gross profit, ConnectWise PSA, MSP packaging 🔍 Secondary Keywords MSP per user pricing, Pax8 storefront, ticket hygiene, time entry discipline, MSP legal risk #️⃣ Hashtags #beringmckinley, #bmkvisionpodcast, #msp, #managedservices, #connectwise, #mspprofitability, #agreementgrossprofit, #psa, #timeentry, #tickethygiene, #peruserpricing, #mspsales, #msppackaging, #hourlybilling, #itservices, #smallbusinessit, #pax8, #elpaso ✅ Enjoyed this episode? Like, subscribe, and share your biggest takeaway below.