A label understands that a demo is recorded on a very minimal-to-non-existent budget. They don't expect it to sound like the finished product, and you shouldn't waste your money on expensive studio time trying to make it sound that way. If they like your songs, then your songs will shine through. Also, don't spend your money on expensive runs of multi-page, multi-color sleeve notes. Anything from a one page insert to a Sharpie on the CD-R in a plastic sleeve will work just fine.
Source : lovetoknow.com