Here's what I have seen from this game. You have a million non-talented artist chasing musical trends who only want trap beats. They either want to lease the beat for $50 or less or they want the beat for free and they will give the producer "credit". The credit wouldn't be bad but since no one but the artist themselves and their friends will ever check out the music it's pointless. So a producer will have to make music that sounds like whatever the industry trend is while trying to sell their beats over and over again at a small rate. That wouldn't be so bad (I guess) if beats weren't literally a dime a dozen.
Then you have "producer manager's" such as Sarah J on Twitter telling beat makers they will have a better chance at placement if the beats they send aren't tagged. Mind you she's just a middleman who wants to use you and push her services. Anyhow even if a beat is copywritten that doesn't mean that it can't be taken and used so of course it's best that's it's tagged. On top of this you have established producers, in some cases multimillionaires who hear beats and decide to remake them, you have producers throwing beats on youtube for free which is a major reason why people don't want to pay much for a beat, you have a lack of artistry and typical trap beats in abundance being the driving force. Since most of the artist aren't really artist in the true sense they don't respect music that's outside of the box. So your beats may be good but since it's only about chasing hits and doing what's hot that music will be brushed over. So if you aren't doing the norm or following trends you won't have much success.
Since most of the producers aren't business savvy and in many cases are just kids, they are thirsty for placements which ultimately lowers the value of beats. Why pay $20,000 a track when this kid will give a beat to you for free just so he can feel good seeing his name on a album cover?
Let's take what @
nikkaz In Paris said about working with up and coming talent. The internet is so messed up now that blogs and online radio want money for placement. We recently contacted Conspiracy World Wide radio with a track and they replied back trying to sell us a list of contact info with various people in the industry.
Blogs want money to have a song featured even if the blog isn't a major player. So he's right about needing lost of money to even get a look. Real talk alot of hits are being made since the industry formula is known and being copied but it doesn't even matter at this point. Fans are so brainwashed that unless it's a big name artist, they don't want to hear it anyway.
I'm pretty sure this is common practice. People add their two cents to a beat then get production credit for it.