I've used the small size fonts built in my machines and used a purchased font. It takes some experimenting. I've found that sometimes with a purchased tiny font that using a thinner 60wt thread sometimes helps the lettering look better. I try to keep my embroidered labels simple, short and sweet so it's easier to fit the lettering inside the frame. Here's a couple I did with the built in font in my Janome 350 with a purchased frame.
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Cari