The first question I can not answer other than to say that the Instructors I know get their insurance, CRP certs, and other requirments paid through the LDS. In general the Instructors at our LDS are fairly busy. They teach at LEAST two full weekends a month, and four to eight weeknights per month as well. This varies based on student load. That may not sound like a lot, but on top of a FT job, you bet.
Most instructors and above I KNOW make cash on the side. But I think the real perk for them is that most go on at least two big Dive Trips a year paid in full via the LDS. These trips are to places like Fiji, so big money trips for those instructors who have the seniority, and work hard.
DM's are not generally well paid in our Area. If you are a DM here, you are doing it on the way to becoming an Instructor. I'm not sure they even get paid other than free air fills, and trips to the Crater and Blue hole paid. They may get discounts on REAL dive trips, but they still pay.
I do NOT think the LDS pays their costs for being a DM, but I could be wrong about that. At our LDS, if you are not an Instructor or better, you are really not bread and butter. Often the DM's assisting on OW training are NOT DM's but DM's in training and they are not even comped for their expenses, so they are PAYING the LDS to aid in OW instruction. :11:
The two DM's in training that were assisting our OW class drove down in their own cars, and were complaining about gas and hotel prices, so I KNOW they were paying the costs.
IMO there is little point in stopping at the DM level as ANY AI, or Instructor will beat you out of any potential job every time.