Websites are not necessarily expensive. You can buy a domain name for $10 and your server space for about $60 per year. It would be good to register the domain name you want even if you aren't ready to get a website up, so no one else takes it!
Did you really mean to write that your friend charges $50 to hand quilt a twin sized bed quilt??? OUCH! I charge $10 per hour. Not many people are willing to pay it. I did one queen sized quilt and I kept warning the woman that the highly complex design she wanted would be expensive, but she paid the final bill of $1150 without blinking. This would be a good time to mention marketing and credentials and references. ...
I don't have a lot of time right now, but let me just say that it's good to offer written testimonials. I have some on my website. Also, have good clear pictures of samples of your work if you are selling online. The woman above was willing to pay me for quilting because I came highly recommended by the owner of our local quilt store. It helps to have connections. Leave your business cards (you can make them on your computer or buy them cheap through vistaprint.com) everywhere! I also have a list of prizes/awards I have won. It's not a long list, and they weren't prestigious or national awards, but it looks good to someone who is shopping for a quilter.
There really is a market out there. You just have to advertise and market yourself. You are GOOD!
oh, and someone mentioned that $10 per hour wasn't enough. You know, it seems like a lot of money to me, but everyone has to establish their own comfort level with how much money they make. Don't undersell yourself!
Sometimes I list a quilt on ebay and it doesn't sell. I have relisted it at a HIGHER price and sold it!