Tassels are actually quite easy to make when you know the tricks. We like to use a hairpin lace loom for ours, because the adjustable pins mean you can make tassels in pretty much any size you want on a single piece of equipment!
Hairpin lace looms, like any other product range from inexpensive plastic ones at $5 a pop to fancy wooden ones that go for $30-40. They all work just as well for tassel-making, so don't feel like you have to break the bank on one.
Now, on to how to use it for tassel-making.
Begin by setting the pins on the loom to whatever distance corresponds to the finished length you'd like the tassel to be. If you want a 3-inch long tassel, set the pins 3 inches apart.
1. Wrap the yarn around the pins 20-30 times, or until desired fullness is achieved.
2. Thread a 9-inch or so length of yarn through the center of the wrapped yarn near one of the pins.
3. Tie the 9-inch length of yarn tightly at the top.
4. Tie a second 6-inch or so length of yarn tightly around all the wrapped yarn, about 1 inch below the top of the tassel.
5. With sharp scissors, cut the bottom loops of the wrapped yarn free from the loom.
7. Slide the top of the tassel off the loom and trim the bottom ends so that they are even.
8. If a beaded embellishment is desired, thread both ends of the 9-inch yarn through the bead.
9. Use the ends of the 9-inch yarn to tie the tassel to whatever the tassel will be attached to.
10. Thread the ends back down through the bead...
...and down through where the 6-inch length of yarn is tied.
11. Trim the ends evenly with the rest of the tassel.