True dat. I believe sprite making can be categorized into 3 sections:
Recolors: The easiest level for sprite making. This is where all beginners should start. Recolors are simply sprites that have been modified into different colors. Advanced recoloration may contain 8-bit sprite enhancing, shade reversing, etc.
Edits: This is the next step up for spriters, probably the most commonly seen. With edits, you take an existing sprite, recolor it if you want, and edit things on it to change its structure around a little. Advanced editing can contain using an existing sprite as simply a body structure and basically "remapping" it, fusing together parts of sprites, etc.
Freehands: These are very difficult to make... heck I can't even make these very good. Freehands are completely original sprites, without a base structure or anything. With these, you simply start with a graphic editing program (i.e. MS Paint) and just start designing it. It can take hours to make a sprite sheet by this method. Expert spriter material.
Hope that gives you a little head start ^^;;