Oddly ( ), I have received numerous emails from composers who want to know what to charge and if they should work for free. I pretty much cut and paste the same answers every time, because it is always the same. I tell them to never work for free. I say, if you work on speculation, invoice them, and defer your pay: when they get paid, you get paid. Get it in writing. Even if it is on a zero budget and you believe in their artistic vision, make sure that if they are a success, you are too and you get paid. If someone wants you to work free with no front end or back end and no promises in writing, they are just trying to take advantage of you. If you get little now, make sure you get more later if the project makes money. I am a music whore, not a music slut. I get paid for what I do.
True, there is a glut of "composers" out there, but you really do get what you pay for. I tend to get a large collection of demos from others, and I listen to them too. The vast majority are painfully average or worse, and these are from people who have studied, put in the work, bought the gear and have the passion for what they do (and many will get better). I think it would be hard (but not impossible) for someone to hire a composer for free and get the quality they imagine. Most of the time, they will get just what they pay for.
A side note about Fruityloops. I met a guy in LA that did a lot of the percussion work in one (maybe more than one) of the Matrix movies. He said he had about 60 megs of percussion loops. And he used Fruityloops only for his part of the project.