You get reputation for most activities like completing quests, killing monsters, crafting, completing city projects, and so on. The more such activities you do, the faster your position grows.
Each region has an independent standing indicator for your character. For example, if you complete multiple tasks in Windsward, you will receive the status of the Windsward region. But if you leave Windsward and travel to a different region, you will no longer gain "Territory Experience" for Windsward. As you can see the system is quite simple: you get a representation of the region where you are now performing different actions.
Reason to get
Each time you reach a new territory rank for a specific territory, you will receive 1 reputation point that you can spend on purchasing various bonuses.
Bonuses can include:
- Increased reputation gains
- Lowering trade taxes
- Collect speed increased
- Home Ownership (Yes, You Must Unlock The Home Before You Can Buy It)
- And more
These bonuses only work in that specific zone and are always active, but only while you are in that zone. For example, if you reach a new rank in Windsward, you can choose to lower your trade taxes. This bonus will lower your Windsward taxes forever. But that won't affect taxes in other areas.
In other words, the more beneficial things you do for a given zone, the more rewards and bonuses you get when you are in that zone. It's like a reward for sacrifice. You can choose a specific area as your favorite and unlock all bonuses there.
How do I spend points?
If you have unspent points, open the Global Map. The game will offer you to spend points. You will be able to choose from four different bonuses for each Fixed Point you have. This is what it looks like in the game.
After selecting a bonus, it will become active. Remember that you can't redistribute points later, so make wise decisions.