Bzinfinity ~
You have it right. It used to always confuse me also until I actually saw a picture of how it was done...

I also didn't "Snip" the positive wire from the ESC as Nick had noted, but instead just unplugged it and pulled it back and wrapped it with a piece of electrical tape.
http://www.castlecreations.com/products/cc_bec.html
Cheers,
~ Jeff