Reputation determines how certain NPCs from factions will react to you. They may, for instance, try to kill you on sight. This is mainly determined by your actions within the game, such as quests. Many quests change your reputation for factions in the game, and it’s up to you to pick which quests you’d like to do, and those you refuse to do.
The biggest basis of reputation is rooted in “Horde vs Alliance”. Many players have multiple characters trying out both. But it’s worth considering that you cannot possibly do all quests or content on one character, as reputation will lock you out of progression in certain lore. As an Alliance member, if you want to do a raid that’s located in the centre of Horde: you’re going to have a real tough time making it past the security. Horde and Alliance members usually diverge pathways for that reason and combine with some neutral content that’s scattered throughout the game. It is possible to get an equal reputation for some factions, but it is difficult.
By gaining reputation, you will gain access to unique items from vendors that are locked behind reputation. You also cannot even do some quests without a necessary determined amount of reputation.
You can gain reputation in various ways, and it really depends on what factions you’re targeting. Some factions allow you to gain reputation through repeatable quests, which is actually known as “repeatable reputation quests, RRQs”. Whereas some will force you to grind stuff like capture the flag and win. This can take a lot of time. You must always consider factions on a case-by-case basis and make your decisions relevant to your current character build.
Some factions will allow you to gain reputation by killing mobs. This may include mobs from opposing factions. However, killing mobs who are way underleveled in contrast to yourself isn’t very helpful. If a mob is six levels below you, you lose 20% of the reputation gain. So if you’re level 59, by targeting a level 52 mob, you’re only gaining 80% reputation of what you would have if you were of equal level. The regular number of points awarded is 25 at 100%.. This “six levels” rule goes down to multitudes. If you go for a mob severely underleveled compared to you, expect only to receive 5 points (20%), which is the bare minimum. The same mathematics is applicable to quests, not just mobs.
The best reputation level you can achieve is Exalted. The worst you can receive is Hated. From Hated to Exalted, it will take 36,000 points - which is an awful lot. In terms of mob kills, that’s 1440. As you may now realise, reputation is a core part of end-game content and can get incredibly complex. Not every faction will allow methodology such as mob-kills.
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