How to Start a Worm Farm for Profit and Make Passive Income

My son is 10 years old and often asks about money, so my husband and I do our best to explain time value and how dollar bills are just placeholders to buy the things we need.

When he first asked how he could make money, I laughed and told him not to worry about it until he was older. But then I realized that it’s never too early to teach children how to be diligent, enjoy work, and make a few dollars to call their own.

So I set out to find something that even my 10-year-old son could do. Naturally, it made sense to start with something he likes. Insects and small critters came to mind.

And that’s when we decided to learn how to start a worm farm to then potentially teach our son how to make money selling worm castings for profit. While it takes some preparation to get started, I knew that raising red wiggler worms would be a great side hustle that my son could one day make his own.

What is Worm Farming?

Worm farming or vermiculture is the act of raising worms as a business in order to make a profit. The high-quality compost it cultivates is a huge benefit to gardeners.

One of the only types of earthworms for farming that can actually produce in high numbers is Red Wigglers or Eisenia Fetida (also sometimes called redworm, brandling worm, panfish worm, trout worm, etc.). According to Wikipedia, the Red Wiggler “is a species of earthworm that is adapted to decaying organic material.”

Related: How to Get Paid to Assemble Furniture

How Much Can You Make Selling Red Wiggler Worms?

If you sell them on eBay, you can make up to $65 per pound (about 7¢ per worm). You can also check into listing and selling your worms on Amazon. Another option is to start a Shopify store to sell your worms independently and list your own prices. For example, Uncle Jim’s Worm Farm is currently selling 100 red wiggler worms for $23.95!

Don’t overlook the power of selling locally, too. You can market your worms in community Facebook groups, set up a simple farm stand right in your yard, or rent a table at your local farmer’s market. Gardeners and homesteaders are always looking for fresh composting worms, and being local means you can offer faster, fresher delivery with no shipping costs. Plus, meeting customers face-to-face can help you build long-term repeat buyers and a strong reputation in your community.

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Supplies Needed to Start a Worm Farm

Getting started with your own worm farm is fairly inexpensive. You may even have most of the items needed already on hand. You can also find most of the items online or at your local hardware store.

• At least 1 pound of red wiggler worms
• A worm farm composting bin system
• Some old brown paper or cardboard
• Household food waste

Related: How to Become a Woodworker & What to Sell

8 Steps to Worm Farming for Beginners

Worm farming for profit is a great way for lovers of the outdoors to make some passive income. Since it is so easy and inexpensive, anyone who has a passion for it can successfully get started. Worm farming is an activity that the entire family could start together and enjoy as a fun project.

1. Customize a Worm Farming Business Plan

For beginner worm farmers, setting up a personalized business plan is highly suggested. It can be a simple plan to start and should include things like where you will get your startup worms from, how much you will price your worms for, and where you will sell them. Since selling worms is a simple, straightforward task, you can adjust your plan as you go.

If you want to fast-track your learning curve and avoid costly mistakes, the Compost Guy Ultimate (CGU) course includes ready-made planning tools and tutorials from a pro who’s turned worm farming into a lifestyle.

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2. Prepare a Home for the Worms

Worm farming for beginners can seem overwhelming at first but it can actually be very simple. There is no need to get overly creative or make it difficult. You can get started with a simple DIY container.

However, if you are not into DIY, you may prefer to purchase your containers for your worms. You can find some great pre-made worm containers at farm stores, garden stores, and even on Amazon.

To set up your farm, drill small, even holes in your worm box lid so that they have air circulating through the container, prepare a bedding of shredded brown paper, dampened aged leaves and lose dirt with plenty of natural pieces of twigs, bark, or wood chips, then ensure proper drainage and add the worms.

Make sure to use quality plastic containers. If you don’t have brown paper, you can also use shredded brown cardboard or shredded non-colored or bleached paper for the bedding as that will be the safest for your worms.

Turn Your Hobby Into a Full-Time Gig

💡 Thinking bigger? Compost Guy Ultimate is ideal for those who want to turn their worm farm into something more than just a fun project. It includes deep-dive lessons, expert insights, and a supportive community of fellow worm lovers.

3. Choose the Perfect Spot to Farm

Some great places to keep your worms would be your garage, basement, broom closet, under your kitchen sink, etc. Worms prefer to be in dark moist areas, so you will want to make sure you have a good cover for your worm boxes.

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4. Start a Compost Bin to Save Food for the Worms

Red wigglers can eat up to their full body weight in food per day. To keep a reminder of what to feed your worms, grab this “What Can Red Wigglers Eat?” refrigerator magnet.

There is no need to buy food for your worms as they will eat table scraps. This is another reason why worm farming is a super low investment business. Your worms will eat most non-citrus fruit and vegetable scraps. Avoid feeding your worms meat, onions, and dairy foods. Also, avoid processed foods as they can contain preservatives that will deter the worms from eating or potentially harm them later.

You can feed your worms on a schedule of once per week or as often as every two days depending on the volume of scraps you collect. A good tip would be to keep a journal so that you can keep track of how quickly your worms are consuming their food. If your worm box starts to smell bad, that could be a good indication that they are being overfed and the food is rotting before being eaten.

5. Get Your First Batch of Red Wigglers

You’ll need to buy your first batch of worms (unless you have some living in your backyard). You can find them on Uncle Jim’s Worm Farm, or you can purchase your first batch on Amazon. This is one of your first real investments, but if you raise the worms right, they will multiply, and you won’t need to buy any more.

6. Prune Castings From Your Farm

You can actually sell worm castings or use it to make worm casting tea to sell. Worm castings are an organic form of fertilizer–basically worm poop. Worm castings act as a barrier to help plants grow in soil where the pH levels are too high or too low. They will help plants absorb nutrients from the soil by blocking extreme pH levels.

Related: How to Sell Plants From Home

7. Sell Your Increase

Once you’ve harvested extra worms, you can actually sell them online or in person. Check with your local gardening or fishing stores to see if you can become a supplier. You can also sell them on eBay or open a Shopify store and ship them.

Related: How to Make Money Selling on Amazon FBA

8. Rinse and Repeat

The nice thing about worm farming for profit is that once you buy the initial batch of worms and the supplies to keep them healthy and happy, you’re typically done investing in your business! Surprisingly, worms are some of the best things you can buy to make money passively.

Worm farming just takes some time to keep your processes running smoothly. Keep pruning your farm and it will keep giving you more worms to sell online or in person.

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Want to Go Beyond the Basics?

Once you’ve got your feet wet and you’re serious about growing your worm farming side hustle, it helps to learn from someone who’s already been there.

That’s where Compost Guy Ultimate (CGU) comes in. It’s a comprehensive course bundle and membership built specifically for people who want to take worm composting to the next level—whether that means more worms, more bins, or even a full-fledged business.

CGU doesn’t just teach you how to keep worms alive. It helps you understand how to optimize your setup, scale production, improve compost quality, and even market your products effectively. You’ll learn everything from bin troubleshooting to pro-level harvesting tips—all from someone who’s been doing this for over 20 years.

Things to Know Before Starting a Worm Farming Business

If you still have questions about starting a worm farming business, keep reading. It’s not a complicated process, but there are a few things you should know before getting started.

Do you need a license to sell worms?

Before you start selling, it’s a good idea to check your state’s rules for small businesses. In most cases, selling worms doesn’t require a special permit, but some states do require you to collect sales tax when selling physical goods. If you plan to sell wholesale to a local farm or garden store, you might be able to apply for a resale or wholesale license to avoid charging sales tax. You can find the most up-to-date information on your state’s Small Business Administration website.

How quickly do worms multiply?

According to Uncle Jim’s Worm Farm, Red Wiggler worms start out as tiny eggs that hatch in about 3 to 4 weeks under the right conditions. After hatching, they enter a juvenile stage where they can eat but can’t reproduce yet. It takes about 40 to 60 days for them to reach adulthood and start mating. With the right environment, a worm population can double roughly every 60 to 90 days.

Who buys “Red Wigglers” aka “compost worms”?

Anyone can buy worms to start worm farming for profit but most typical buyers tend to be gardeners or individuals who want to start a compost bin for personal use. Since worms are often used and sold as bait for fishing, some fishermen buy worms for this purpose as well. Red Wigglers are also great for feeding certain pets such as birds, turtles, and snakes.

Related: How to Get Paid to Go Fishing

Is worm farming really easy?

Worm farming is simple, but it’s not easy until you know what worms need to survive. It may take some trial and error to find the perfect environment for your worms but once you’ve mastered the process, it’s typically smooth sailing from there.

That’s why investing in the right course—like CGU—can save you a lot of time and frustration. It walks you through every challenge new worm farmers typically face, so you don’t waste months troubleshooting basic issues.

Who Can Start a Worm Farm?

Even a child could raise Red Wigglers in their spare time. You just need to make sure to feed your worms adequate table scraps such as fruits and veggies and non-processed or fatty foods. You also need to keep them in some solid containers with non-toxic bedding that is comfortable for them.

Worms will be the happiest in a dark and moist place such as your basement, under your kitchen sink, or in a closet. It really is straightforward and inexpensive to get started worm farming for profit. Just remember that happy worms are profitable worms!

If this has sparked your interest, and you’re ready to make worm farming a bigger part of your life, check out Compost Guy Ultimate. It’s the best next step for anyone who wants to go from curious beginner to confident composter.