First purchase some seeds from a reputable dealer. I bought mine from an online merchant. They are the size of small peas.
Fill pots with potting soil. Do not use regular dirt or it will compact too much for the baby dragon's to sprout. Plant your seeds about 2 inches deep.
Water heavily and cover with plastic wrap to create a little green house that will hold in the humidity. Make sure the soil stays moist and they get plenty of sunlight, but not direct sun all day.
After 8-12 weeks your baby dragons should start poking their heads up.
Plants will appear as palms and as they age will grow into large trees.
Take make sure they grow to big Dragon's Blood trees, keep their soil moist - never let it go dry. Make sure they get light sunlight and never direct sun for long hours. Mine grow best with a few hours of morning or late evening sunlight.