I bought ColoFolXS in an effort to restore some of the functionality of label colors to Mavericks. The tags in OS X 10.9 are not as effective, in my opinion, for marking items as labels were. Of course, it's just like Apple not to give us a choice since usability dropped off their priorities and principles lists with the advent of OS X 10.7 Lion.
ColoFolXS is a partial solution. It can add color folder icons to your folders; unfortunately, if that folder has a custom icon of any kind, the color is not added on top of the folder icon but instead replaces it. As well, the colored folder will not add its color to the whole line as labels did - you may see this as an advantage or a drawback depending on your own preferences.
ColoFolXS can link folder colors to tag colors, but it does not seem to do so reliably. As I say, it's a partial solution, but it's not an expensive one.