I am a craft artist in the US.  I work mostly with glass (fusing, lamp
work, and mosaics), but also work with wood and metal.  I create wall
art, tabletops, wind chimes, tableware, knick knacks, jewelry, drawer
pulls and decorative house wares.  I am very creative, but I don?t
have any formal training.  A woman I met in a coffee house told me how
her sister designed crafts for a company who distributed "country
style craft" catalogues.  She explained the process to me like this:

Her sister would?
1.  Design and build a prototype.  
2.  The prototype would be sent to the company for approval.
3.  Once approved, the company would have the design mass produced overseas.  
4.  The product would be sold through catalogues. 
5.  She would receive a royalty payment for each product sold.

What I want in the answer.  
I would like to know if companies as I described above exist.  If so,
how do I find a company to purchase my designs?  And lastly, what is
the proper terminology for this type of agreement?