Over the years I've been asked innumerable times whether it really is still possible to make money making old-fashioned 'rag' rugs. 

The answer is yes, but... Yes, you can make money making rugs at home, but you have to go about it the right way. Don't expect to get rich, but if you follow some simple rules you can make a steady income. 

RULE 1: LEARN YOUR CRAFT! 
I will never forget the words of an old German weaver (many, many) years ago. He said, "Hand made should never look 'homemade'!" This is a good rule to follow in rug making. Find a type of rug that attracts you (try out two or three), and get very good at making them. Learn how to do a professional job from fabric preparation to finishing. There are a good many second- and third-rate rugs that turn up at flea markets selling for a couple of dollars. If you want to make money from your craft, never settle for less than a first-rate product. 

RULE 2: MAKE IT YOUR OWN! 
Make a type of rug that allows you to add your own creative touches. Think of yourself as a folk artist making one of a kind rugs, rather than a "crafter" following the same path as thousands of other people. Allow yourself a 'training period' to experiment with colors, fabrics, designs, shapes, etc. Some of your experiments will work great, and others won't, but you will get to the point where your rugs are a unique part of you. One of the biggest mistakes that would-be rug makers commit is selecting a type of rug that is 'fast and easy' thinking that they can churn out rugs like a factory. You can't. You'll get bored, your muscles will tire and you'll have trouble finding a market. 

RULE 3: KNOW YOUR MARKET! 
You can't make a living as a rug maker unless you understand why people buy hand made rugs, spending a lot more money than for a rug of the same size at a discount store. There is an emotional appeal to the hand made rug that the mass produced rug will never have. When people purchase a hand made rug they will look for design, quality and a beautiful finish. If they look at your rug and say "I can go home and make that myself", you haven't put enough time into learning your craft. You'll know you are becoming a real rug maker when people's reaction tend to be "How on earth did they make that?" or "I'd never be able to make a rug like that!" One of the best markets for hand made rugs is through reputable interior designers and decorators. These people are always on the look out for unique, hand made items. Visit several in the nearest city (and bring along examples of your work). 

RULE 4: RESPECT YOUR OWN WORK! 
People see what they expect to see. If you try to sell your work where there are a lot of second rate "crafty" items nearby, people will assume that there isn't anything particularly special about your work. On the other hand, if you market your rugs through craft or art 'galleries', museum shops or juried textile shows, people will assume that your rugs are indeed examples of folk art. In order to market your rugs successfully, you have to respect your own work enough to make sure that your rugs are sold in the right company. Part of respecting your own work is to price your rugs right. Keep track of how much your materials cost and how much time you spent to make the finished rug. Pay yourself a decent wage. When you add up how much the rug has to sell for you will probably be shocked, but remember you are not in competition with the discount stores. 

THE BEST RUGS TO MAKE 
For the best return on your efforts with traditional rugs, select techniques that allow you to work a pattern or design. These include wedge knitted rugs, fabric tapestry rugs, hooked rugs and their relatives, and shirred rugs. Stay away from techniques that only allow a hit or miss design or at best bands of colors. For example, if you want to braid rugs for profit, learn the wide braids (8 or more strands) which allow you to create a pattern in the rug. Another example would be the difference between crocheted and fabric tapestry rugs. Crocheted rugs are pretty common, but fabric tapestry rugs (which aren’t any harder to make) will sell at about four times the price because they have a pattern worked in, making each one unique. Rugs made with wools will command higher prices than rugs made with cottons. And particularly the shirred and standing wool rugs, with their texture and thickness will consistently outsell any of the rugs with flat surfaces.