Headcrusher: to be honest, if you want a label "to be on the same label as some other cool bands in their genre" - then you have your priorities all fucked up.
I mean, this is about making the music you love and sustaining yourself financially. Here's how my "unknown band" budget would look:
a) Press 1000 cds (4 page booklet in b/w): 589 Euros (if you print 500 CDs, it'll still cost you 490 Euros, so you might as well get 1000 right away)
b) Find a great type designer to design a very minimalist frontcover with just your bandname and albumname: 200 Euros
c) Search DeviantArt, photo.net, flickr etc. for a great beginner/amateur photographer to take 1 main band photo: 100 Euros + 25 Euros for a bottle of his favorite booze
d) Get your website designed and coded by some asian/indian coder that you find on one of these "design bidding" sites: 150 Euros (base it on Wordpress or any other blog)
e) Create LOTS and LOTS of interesting content using your dad's videocamera and iMovie, your cellphone camera or similar things: 0 Euros
f) Spend 10h a week on all relevant internet forums for your music (local, national and international) and spread the word about your band: 0 Euros
g) buy 1 ad and negotiate a 2 page article in the biggest national magazine for your style of music: 600 Euros (if you are in a tiny country, buy an ad in the biggest German or US magazine).
h) Send out 100 CDs to relevant webzines, print magazines etc. for review: 300 Euros
i) Shoot a home video (just like Ken did for Borealis) and edit it to a song using iMovie or some other simple software: 0 Euros (make sure you come across as a band with personality and not small-town dudes who want to be rockstars).
j) Print up 100 shirts (70 for men and 30 for girls) of the same white on black design: 550 Euros
k) Get started playing gigs and festivals that you booked 6-12 months ago for the time of the CD release. If you didn't do that, start playing self-organized shows in your area. Buy the eBook
"Tour:Smart", the best book on touring ever written. And most importantly:
l) DON'T SUCK!!!
Altogether that's 2600 Euros of costs. You will get EXACTLY the same amount of exposure (I'd bet you actually get a ton more) as you'd get with a label that lets you pay for stuff. Usually those labels do not believe in your band and don't do jack shit for you. If I was a label getting paid 2000 Euros by a band, do you think I'd spend more than 2000 Euros on that band that I don't really believe in anyway?
The difference now is that you earn EVERY cent you make off of the CDs and shirts. In a normal contract you buy the CDs you sell as merch from the label. So if you buy them for 6 Euros and sell them for 10, you make 4 Euros per CD. If it's your CD, you make 9 Euros per CD. Same with shirts. Make them for 5,50 Euro per shirt and sell them for 15 instead of buying them from the label or an affiliated merch company for 9 Euros and selling them for 15. You effectively double your income. Don't let me get started on how much I think it sucks to buy YOUR OWN ALBUM from your label for more than manufacturing cost (60-95 cents).
Also 2600 euros divided by 4 or 5 in a regular band is 500-600 Euros per person. That's not a lot of money, tbh.
I am all for using a label to get started, but use one that has the money to push you and not one that wants you to bring the money first ... unless all you care about is "being signed" so you can be cooler than your next door band ...