I've seen these done in many places, and it is the easiest way I've found to organize my jewelry. A bulletin board! I chose not to add any fabric to the background, because I like to be able to see my jewelry and it happens to blend with our wall color. But, fabric or other embellishments are an option. I simply use push pins to hang my necklaces from the board. I then hang matching bracelets or earrings off of the same push pin or off of the necklace.
I also added a tray to hold the things that are harder to hang. This would include earrings that don't go with a set or my watch.