There was a good discussion right here on these pages about this same 'indicator maker' starting back on 9/25/13. Some pros and cons mentioned.

I don't know why anyone would bother. I just place a simple 'slip knot' where I want along the tippet or leader and insert a piece of about 1-1/2 inches of Aunt Lydia's sparkle yarn in the loop. Center the yarn, or not in some cases, and slide the slip knot tight. Works great. Very little air and even less water resistance. Use 2 pieces in heavy water or with a heavily weighted nymph. Easy to see in several colors like orange, bright yellow, red, gold and white. And it costs virtually $0.00

Allan