Over the last 20 years of sewing and doing machine embroidery I have found many sites that not only sell embroidery designs, they also give out some great FREEBIES. You will want to try out a sites freebies if at all possible to be sure that the digitizing is up to your standards for your project.
This is a work in progress as is everything on the Internet. If you find a link is broken, please let me know. If you know of other great sites, please let me know so that we can share with others! When you find a site that you like, you need to sign up for their newsletters if you can so that you are alerted to any sales, new products and new free designs.
First on the list is The Secrets of Embroidery. This site is like a great big machine embroidery design mall with lots of stores and several free designs every month. Some of the stores that are listed below also sell through this mall.
My favorite site is Embroidery Library . They have thousands of great designs with several free ones each month. They have a Christmas program where you can sign up for free and get discounts on Christmas designs and special Free designs. They also have frequent sales. Once you have registered with them, they remember you machines format and alert you if you are buying a design that doesn't fit your machine. I also get birthday presents from them. I have used many of their designs and they sew out fantastically. You can't afford to not visit this site!
A site with some awesome designs is KennyKreations an Australian mother and daughter team that designs gorgeous designs and projects. They have a newsletter and the site owner is happy to help and answer questions. You can sign up for their daily digest also.
More sites in no particular order are:
The Purple Hat They feature a lot of In the Hoop designs, lots of juvenile and children's designs and tons of freebies that are perfect for kid's quilts.
Ahey Embroidery
4-Hobby Machine Embroidery Has a nice selection of ethnic machine embroidery designs including Judaica religious symbols and 2 Hebrew alpha bets.
Laura's Sewing Studio
Sew Swell
Hatched in Africa A bonanza of beautiful freebies throughout their site.
Buystitch
BFC Creations Another very generous company with freebies and well digitized designs.
Sew N Sew
Amazing Designs They have lots of designs to purchase, but do have some freebies that you can try to see their stitch quality.
Creative Machine Embroidery One of the mainline Embroidery Magazine and they also have freebies at their site.
Designs in Machine Embroidery Yet again a mainline Embroidery Magazine with freebies on their website.
ABC Cross Stitch Patterns
Coopers Stitches
Ann the Gran
Designs Sew Fine
Bertinas Studio For sewing, quilting and embroidering. Limited amount of free designs.
Creatively Yours They have an eclectic bunch of designs and will also do custom digitizing.
ABC Embroidery Designs Along with embroidery designs, they also sell embroidery threads and pre-wound bobbins.
Snow Lady Designs Has a lovely eclectic set of designs that you should find interesting.
Sew Terrific Huge selection of machine embroidery designs with a Free design archive.
Oma's Place Embroidery Designs with a message. Has a variety of different designs including some for parents with special needs children such as those with autism. Many of the design look to be .pes format designs, so before buying be sure you can reformat for your machine.
Nicole's Designs Has lots of charming designs that would be great for children's items. They specialize in designs that make long border designs such as her modular train sets. Generally there is also a freebie that goes along with the set.
Five Star Fonts Specializing in fonts but they have lots of other designs as well.
Embroidery Garden Has lots of cute Free designs and projects, plus in the hoop designs. One I just had to chuckle over, was baby boy sprinkler covers. Well remembering those 'fun' incidents when my boys were little, I'm surprised this is the first time I've ever seen a solution to this little problem!
Embroider This! Has over 200 free embroidery designs. they also have many embroidery blanks including a large selection of handkerchiefs.
Lindee G Embroidery has a selection of free designs to try out that rotate so if you see one that you like download it now while you can.
DigiStitches Lots of great freebies especially for kids, and they also feature in the hoop designs.
Embroidery Arts Features a massive amount of different fonts. Sign up for their free newsletter and You can download a free sample design font from many of their sets. A great chance to see how they embroider out and if they will give you the look you want. The designs can be bought one letter at a time or as a complete set.
The Embroidery Boutique Has some cute freebies, applique designs, alphabets, and filled stitch designs. Many of the designs are more for children.
Essenzadifilo's Blog Much of the text here is in Italian, but according to my friend Else, if you click on the picture you can download the designs.
Machineborduren Is yet another personal site by a woman in the Netherlands where she gives out her designs. The site is in Dutch, but just click on the words and you can then see the design and click on what you like to download.
A Stitch A Half Has some great designs especially in the hoop purses. Vist them for some great ideas and their current freebie.
Anna Bove Embroidery I can't believe I had forgotten this site until a friends asked if I knew where some snowflake designs were. They have a whole set of freebie Celtic snowflakes, plus a lot of other great freebies. They also sell lots of very nice designs and machine embroidery thread as well. You really should check out this site even though it is so far down on this list!