How to use a photo for a fill on a logo

Ive been trying for days to figure this out but I cant. Im not well versed with photoshop though, so Im coming to the community here for help. Im not a master with terms and tools either so I might be kinda slow.
Im trying to get a logo for my friends business to go on top of a background image and then, in a way crop the image out from the background leaving jsut the logo with the image within its boundary and then empty space around the logo. I have an example that a person from another forum tried to do for me to walk me thru but he stopped helping me suddenly.
(that is kind of what I want to do. That was the example someone did for me but I cant figure out how he did it. the words in my layer is not text and its an image I was given so I am not sure how to fill it.)
Thats what I have to work with, its a sketchy photo since its a screenshot then compressed so the quality is lacking. I have it a a little firther a long now to this
And that is where I am stuck, its kind of the opposite of what I want to do.
Thanks for the help if you can lead me the right way!

Just to follow up on the above response, you need something that looks more like this:
then you can either:
A) Have this as an actual layer above the picture and set the blend mode to "Darken" or "Multiply"
OR
B) Have a layer filled with black above the picture and use a mask that looks like the inverse of above (ie. black letters with white background on the mask)
Mike

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