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

Carlos shares how a 15-year marketing agency spun up a separate MSP, why he picked ConnectWise, the Pax8 “storefront” insight most MSPs miss, and the pricing/finance guardrails he’s using to scale to $1M in 2–3 years. Links Bering McKinley resources: beringmckinley.com

Today’s From the Trenches is a masterclass in crossing the chasm from marketing to managed services. Carlos built a successful creative shop, then spun his growing IT work into a separate MSP to isolate risk, tighten agreements, and scale on purpose. He talks candidly about choosing ConnectWise (PSA + RMM), structuring agreements, and how a Pax8 public storefront can meet modern buyers where they are—researching and purchasing before they ever talk to sales.

We dig into numbers that actually run an MSP: targeting 42% gross profit and 17% net, and measuring Agreement Gross Profitability (AGP) at 65%—including a live walkthrough on a $1,250/mo nonprofit agreement (licenses + labor caps) and why moves/adds/changes belong in project SOWs, not buried inside your managed services. Carlos also shares a contrarian hiring take—skill first, coach the attitude—plus how his marketing DNA (short video, humor, local presence) becomes a competitive edge in a city where most providers still sell “by the brochure.”

If you’re under $2M and stuck between recurring revenue dogma and real-world profitability, this conversation gives you an operating model you can copy tomorrow—pricing, packaging, storefront strategy, and a content plan that makes you the most likable MSP in town (which, in simple sales, wins).

Separate entities to ring-fence liability (marketing vs. MSP). Sell proactive care + mark-up licenses; bill support/service hourly, or price all-in—but track AGP. Guardrails: 42% GP, 17% NP, 65% AGP. Keep remediation as projects; don’t let MAC work nuke margins. Use Pax8 storefront for modern, self-serve buyers; add analytics. Content beats brochures: be useful, human, and present. Origin story & toolstack Pax8 storefront = modern buyer enablement Pricing models & AGP math Projects vs. managed services First hire philosophy (skill - attitude?) Local content & trust flywheel MSP pricing, Agreement Gross Profitability, Pax8 storefront, ConnectWise PSA, RMM, MSP margins, MSP marketing, simple vs complex sale Moves adds changes (MAC), nonprofit IT support, per-user pricing, hourly vs. recurring, Microsoft CSP, small business cybersecurity

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