If you are a rapper and you pay a local producer with no industry placements for a beat you are a certified dumb ass...
You gotta look at it from the artist perspective here...they get a track, they have to record it, get it mixed, package, and figure out an EFFECTIVE delivery method for it...In today's game the delivery method may not even involve payment...why should local producer x get paid when local artist Z does ALL of the leg work? Because a "producer" put his time into the track? Seriously? Reeeeallllly?
Another reason why local artists should never pay local beatmakers is because its a risky investment...beatmakers tend to veiw themselves as providing a service but thats probably the furthest thing from the truth...an actual producer with hit making taste and methods provide a service and they should be paid...but homey programing away on FL studio is providing a track...nothing else, that track is an investment if it is bought because the artist is expecting to profit off of the track...If you as the beatmaker have no track record of making artists money because of them rapping on your beats then why would an artist drop money on you? Cause you make beats???? ReeeeAaaaallllly?!
Lastly if you are in a major market like I am (Miami) then there are plenty of amazing beatmakers in your local scene who would love to work with you provided you're good... Down here the only unsigned acts who pay for beats are the wack ones...
The last project we put out had beats from Dj Smallz, Cool and Dre, Cp Holloywood, Hugo Diaz (won a couple grammys), and someone else im forgetting...NONE of them were paid...so if I can get these guys to contribute to my artists projects for free then why on earth would I pay you? Cause you make beats?????