I make a lot of mine on my computer using different fonts.
I've used June Taylor transfer paper and Printed Treasures
but I've also used a lighter version of whatever fabric is on the back---something either solid or mottled--ironed on to freezer paper and then run through my printer. I usually do a sample on regular paper first to see how it positions, etc.
Then I attach to small piece of tape to hold the freezer paper to the fabric so it doesn't get caught in the printer.
Sometimes my handwriting isn't good enough and the computer makes nice clear letters. I always add my label to the back because I think on the front would detract from the design.
I always include who it's for, my name and the date and if it's for a special occasion I note that as well.