I make my labels this way, too.
The only is differance is that I embroider over the letters.
The ink will wash out. (There is some "stuff" you can treat the fabric with but I can't remember what is called. If used, printing will not wash out and you don't need to embroider)
I'll try to post a couple of my labels done this way. I like the versatility of being able to used differant fonts, etc. I always print the labels the color that will be embroidered over it, too.