I have made some simple and very functional lanyard for my knives. Here's what you need:
1. 26" of 550 Paracord
2. Wooden bead from the Hobby Store
3. Match

First you need to make sure that the hole is the right size in the wooden bead, I used a 13/64" bit. Then feed both ends of paracord through hole and tie overhand knots at both ends. Seal ends with flame. Attach to knife by feeding loop through lanyard hole and then feeding bead through loop.

The nice thing about this setup is that when you want to use the lanyard you slide the bead down to the overhand knots. When the lanyard is not in use, slide the bead up to the knife and there won't be any loop to snag on stuff.

For me, the 26" of Paracord is the perfect length to allow me to wrap the lanyard around my hand and still have enough slack to choke up and use the choil or hold way back for chopping. I slide the wooden bead to the knots, drape the lanyard over the back of my hand (with thumb pointing up), then roll my hand down and grab the knife. This wraps the lanyard comfortably around the back of my hand and gives a very nice grip.

Your milage may vary. <img src="/ubbthreads/images/graemlins/smile.gif" alt="" />