Record labels pay bands to record and tour. The better label the more money you get to record & the more money to tour. Record labels are far from outdated or useless because mp3s,the internet,myspace,etc..
Wrong.
Labels front bands money to record that the band has to pay back out of CD sales. Bands (especially in this genre) make little to no money on CD sales because all the money goes back to the label for the labels expenses (recording costs, mixing/mastering costs, artwork/layout costs, CD pressing, advertising, etc).
The labels (most of them) do NOT front money for bands to tour. A booking agent, which the band has to pay, books a tour and sets a rate of pay for the band (ex. $1000 a show) that the CLUB pays to them to book them. The band, out of that per show fee, has to buy gas, food, pay a tech or 3, pay the soundman, pay for whatever vehicle maintenence they need while on the road, and divide up the rest for themselves afterwards, then pay taxes.
Playing live Metal is not a money-making venture. Even "bigger" bands like Iced Earth and Nevermore have "day jobs" that they make thier living at outside of the band. They make enough to add to thier income, but they do not make enough money to live until you start getting up into the Ozzfest level. Most bands do it for the love of the music.