This link goes to a place with 100 embroidery design companies, explains a little on each, many have free designs too.
http://www.embroiderytop.com/index.html
My super favorite are the very fancy Free Standing Lace (FSL)Christmas from OeSD, each year they have specials to earn thier xmas pkgs, usually offering 3 cds worth. And online exclusives.
Then Embroidery Library, yes paypal is the only way I like to buy also, and I'm in the xmas club there and have earned $95 so far free, when the club session is done, I'll get to spend it on designs I want. They always have freebies, and I LOVE their ideas, tips, & video tutorials on how to do embroidery on everything from balsa wood, cork, leather, mouse pads, velvet, sweaters, things I've never thought to embroider on before opens a ton of ideas for gifts. They also always have some under .99cent buys, and specials often for $1-$1.25 a pattern...discount codes for $5-$10-$25 off orders (buying double that amount, saves 50%), and your birthday you get either one pkg for 50% or $10 off your order, and you don't have to order more than the $10, so it can all be free..and your choice. Gotta check out this site, if nothing else for the ideas & how-to part.