feeders, yeah... and the reptile food industry is but a small fraction of their business. Jim from Armstrong's said the herp industry is a good boost during the winter - when fishing sales are low! I tell you, bugs are easier to bred than chameleons.
What chequepoint said is kinda pretty much true. You can do it "right", as a hobbyist, and make a profit - but you do have to put one ahead of the other. Because, in any business dealing with nature (farming, animals,etc.) it's not all in your control. There will be a point where you have to put one ahead of the other - profit, or the hobby.
If the hobby is more important, you will have times when you lose money, eventually. That's lessened if you keep things small.
If profit is the main goal - there will be times when the work becomes work, and not a hobby. You'll run the risk of it losing the "fun". And God forbid you run the thing as a primary source of income, and you get into a bad financial situation. You'll end up on the BOI! And THEN try to get back your good name!
Many many people have tried to make money with breeding animals - few do it right. Some keep it small, and sell animals on the side (me). Some go all out, sell a lot, put up big, fancy web-pages, try to sell more, and when they get into a bind, they sell things they shouldnt', to people they shouldn't, and piss off people they shouldn't. When it comes down to selling a sick animal vs. starving your family, you gotta do what you gotta do.
The thing is, the ONLY way to really sell a lot of chameleons in this hobby is to have a good reputation (or be an importer selling to pet stores in massive volume, which requires a good rep too.). You piss people off, and you are done. Usually. I've seen many good people, good knowledgable people, with experience and reputations - SCREW me and others over. Just because they were hemmoraging money.
One thing I DO know, is that many of the really reputable, BIG name breeders, take a hit once in a while. They are succesfull because they know their reptation for quality is more important than any individual sale. If you're on the small scale, that one, rare DOA can really hurt. It would really hurt me - I try to make some money, but a single DOA animal is an expensive hit - shipping isnt' cheap - especially if I'm not dealing in quantity. Plus, it's not like I have a bunch of animals sitting as backups - I had waiting lists for males a few years ago! One DOA would really hurt me. Some breeders, not so much - they might even SEND dead animals. I've seen people almost puke when opeing a box. The dealer sent them an already-ripe dead snake.
All things you gotta consider.
I tell you where there's some money - FISHTANKS. The folks are glasscages.com (twin Oaks) have it. They make, sell and distribute their own tanks. So many middle men cut out,(imagine, what's the WORST thing in the world to ship - a hollow box of glass) costs can go down really far, and they can still make money.