Yes, selling locally only. And yes, I helped him get started on the whole outfit.
He has a couple of 10g tanks and his breeding pairs are in his main reef. He's gotten them accustomed to breeding on a tile. Then he just transfers in the tile, hatches, and grows them out. Increasing from ~1/3 to totally full in teh 10g as they age. They are then moved, en masse, into a 40g. He has ~3-4 40g breeders he holds them in until ~3/4" in size at which point they are sellable.
It does take alot of work... I've raised seahorses, bangaii, and maroon clowns to sellable size and you have to check and feed daily (sometimes more than daily).