Red worms, also known as red wigglers, are often referred to as the "Cadillac of worms" due to their fast reproduction, their large size and the tremendous amount of organic material (known as castings) they produce. It's this casting material that forms the basis of red worm compost that is valuable to gardeners--and which can be profitable for you to sell. Not only are worm castings loaded with plant nutrients and beneficial bacteria, but worm castings, unlike some other plant fertilizers, will not burn even delicate plant roots.
Talk to your local garden center and commercial gardeners to see what their interest would be in any red worm castings you might wish to bag and sell. Place a free ad on craigslist in your local area and see what kind of response you get.
Based on the response you received to your initial inquiries, purchase sufficient worm farm trays and worms to meet the initial demand for castings. As your business gets going you should receive more inquiries from local gardeners and others who wish to buy your product.
Shred enough newspaper and cardboard to almost fill the number of worm farm bins you have purchased. Add organic manure into each bin according to the worm farm instructions, then add approximately 1 pound of worms into each bin. Dampen, add vegetable scraps, and place your bins in a dark and warm place.
Provide your worms with sufficient vegetable scraps, leaves and grass cuttings; and begin harvesting your castings in approximately 30 days. Place the castings in 5- or 10-pound bags and attach a label describing your product as 100 percent organic worm castings. Take your castings to the local dealers who expressed an interest when you contacted them earlier and/or place another free ad on craigslist aimed at garden enthusiasts. Check out current prices for worm castings on various internet sites and price your product accordingly. If you're selling to retailers, you will need to discount your price approximately 50 percent off the retail price.
Use some of your profits to purchase additional worm farm bins and supplies (organic manure). Use worms from your existing bins to populate your new bins, as your worms will be multiplying and will need additional space.