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

In this episode of From the Trenches on the BMK Vision Podcast, Josh Peterson sits down with Carlos Torres III for a conversation that lands in an unexpected place: MSP growth is increasingly a marketing and leadership problem—not a technical one.

Carlos didn’t start as an “accidental MSP owner.” He built a marketing agency first, then watched IT responsibilities quietly expand inside client relationships until the only rational move was to separate the IT entity, formalize agreements, and build an operating model that can scale without putting the original business (or its liability exposure) at risk.

If you’re an MSP owner trying to escape pricing pressure, clarify your packaging, or build a business that sells without you personally carrying every deal, this episode will feel less like a story and more like a blueprint.

Why “marketing-first MSPs” have an unfair advantage

Most MSPs are built by technicians who become owners. That path produces deep delivery competence—but often creates a business that can do the work without knowing how to consistently sell the work.

Carlos comes from the opposite direction. His perspective is simple: buyers don’t want to be “sold” the old way. They want to self-educate, validate trust, and move forward with confidence. In other words, today’s MSP buyer behaves more like a modern consumer—research-heavy, skeptical, and allergic to pressure.

The strategic implication is big: if your MSP relies on “explain everything on the first call” selling, you will eventually lose to a competitor who makes the purchase feel clear, safe, and inevitable.

• Trust is built before the first meeting (content, clarity, consistency)
• Packaging reduces sales friction more than “better closing” ever will
• Marketing isn’t a department—it’s the system that makes growth repeatable

The MSP problem this episode solves

Many MSPs aren’t losing because they lack skill. They’re losing because the business model is unclear—internally and externally.

This episode confronts three problems that quietly keep MSPs stuck:

• Confusing buying experiences (prospects don’t understand what they’re buying or why it matters)
• Pricing without margin discipline (agreements feel profitable until you measure real delivery cost)
• Scaling without operating structure (growth that depends on owner heroics becomes fragile)

Carlos’ journey exposes a leadership truth: you can’t “sell your way” out of a model you haven’t operationalized.

From effort-based pricing to outcome-based discipline

One of the most practical moments in this conversation is the shift from “what feels fair” pricing to measurable profitability targets.

Josh frames the financial guardrails that prevent MSP owners from building revenue that looks impressive while the delivery engine quietly leaks:

• 42% gross profit as a baseline target for the overall MSP model
• 17% net profit as a long-term operational benchmark
• 65% AGP (Agreement Gross Profit) as the minimum standard for managed services agreements

The point isn’t the exact number. The point is that without targets, you don’t have governance. And without governance, “growth” becomes a story you tell yourself while the business becomes harder to run.

The packaging model that protects your future margins

As MSPs mature, many discover an uncomfortable reality: the client isn’t the problem—the scope boundary is.

This episode offers a clean way to think about packaging:

• Recurring covers proactive monitoring, baseline protection, and predictable hygiene
• Projects cover remediation, upgrades, migrations, and intentional change
• Hourly (used correctly) can remain a healthy model when tied to clear expectations

The trap Carlos and Josh circle is the “moves, adds, and changes” spiral—where an agreement slowly becomes a catch-all bucket for anything the client asks for. That’s how MSPs end up over-delivering and under-earning.

Selling like the next generation buys

Carlos’ excitement around marketplace-style purchasing is more than a tactic—it’s a signal.

MSP buyers are moving toward a world where they want:

• Transparency (what does this include, and what doesn’t?)
• Control (let me learn and choose without pressure)
• Proof (show me you’ve done this before and you’ll be here after the sale)

That doesn’t mean you eliminate relationships. It means you reduce friction. The best MSPs don’t “convince” prospects—they create an environment where the right prospects can confidently commit.

A leadership lesson worth stealing

Carlos’ most consistent leadership theme is not technical—it’s personal: stay true to service without becoming a hero-based business.

• Empathy builds trust—but boundaries protect the company
• Going “above and beyond” is valuable—until it becomes your only operating system
• Clients remember how you show up under stress more than how you present in sales

And then there’s the hiring perspective that will spark debate: Carlos would prioritize skill first, believing attitude can be coached—but competence cannot be willed into existence. Whether you agree or not, the meta-point stands: your first hires define your standards, and standards define your future.

Episode highlights

• Why separating entities (marketing vs. IT) can be a strategic risk decision
• The “new buyer” mindset and why traditional MSP selling keeps failing
• Financial targets that prevent agreements from becoming margin traps
• Projects vs. recurring: how scope boundaries protect delivery teams
• Leadership through service—without building a business that depends on heroics

About the guest: Carlos Torres III

Carlos Torres III is a business owner and marketing strategist who expanded from running a successful marketing agency into building an MSP with a distinct point of view: modern buyers want to self-educate, trust the brand, and purchase with clarity. His approach blends marketing discipline with service delivery—creating a playbook MSP owners can learn from even if they never plan to run ads.

Connect with Carlos Torres III on LinkedIn →

Frequently asked questions

How can an MSP differentiate without competing on price?
Differentiate through clear packaging, consistent messaging, and an operating model that sells outcomes—so the buyer understands value before comparing monthly fees.

What is AGP and why does it matter?
Agreement Gross Profit (AGP) measures the true profitability of each managed services agreement after licenses and labor. It prevents “profitable-looking” clients from quietly draining your capacity.

Should MSPs include projects inside managed services agreements?
It can work, but it’s risky. Most MSPs protect margins by separating remediation and change work into projects, keeping recurring scope clean and measurable.

Why do MSPs stall at $1M–$2M in revenue?
Because early growth is often relationship-driven. Breaking past that requires intentional sales systems, clearer packaging, and disciplined operations—not just “more hustle.”

How do modern MSP buyers prefer to buy?
They want to self-educate, see proof, understand boundaries, and make a confident decision without pressure—more like e-commerce behavior than legacy IT purchasing.

Related resources from Bering McKinley

• Solving common profitability challenges with MSP financial services
• The integration blueprint: building a tiered strategy for ConnectWise and 3rd-party tools

Want to continue the conversation?

If you’re building an MSP that sells with clarity, delivers with discipline, and protects margin as you scale, explore the Vision operating system or apply to be a guest on the podcast.

👉 Apply to be on the BMK Vision Podcast
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