PomPoms are designed to be placed on little girls' shoelaces. They are made by Westrim Crafts of Van Nuys, CA. They are available at many craft stores.
They come with the hole already in them.
Even better, they come in brown!
Better yet, they cost a dime a million.
They sink very slowly and absorb scent readily. :p
...actually I've just been waiting for an excuse to use some of these crazy faces...