You can use plain or Kool-Aid dyed wool to make your own felted beads--then embellish them as you would like. The following directions are for wet felted beads, but if you prefer, you can needle felt them instead.
Small amount of natural or dyed wool roving
Beads for embellishing (optional)
1. Tear off a piece of wool about the size of a golf ball. Saturate it with hot water.
2. Start rolling the wool in your hands to form a ball.
3. Add soap and continue to shape the ball.
4. The more you squash and manipulate the wool, the more compact your bead will be.
5. When you are happy with the size of your bead, rinse it and allow it to dry.
6. Use a sharp needle to add embelishments, or needlefelt your finished bead.
7. To use, poke a sharp needle through the bead, and attach as desired.