In town I was still lvl 1 the first time I played. Then I started again and noticed 2 things. The most annoying is the fight with the young orcs, if you don't manage to lasthit them with your heroes, you won't get 440exp, you will get nothing. The second thing is that if you are ruthless and want to beat up everyone you encounter good or bad, you get waaaaay more experience. I somehow agro'd all the people near the boat on fire, by stealing the hammer and nails, and got like 220exp x 10. Also the people at the bridge, i was nice the 1st time and got some exp, but it was way less then when i decided to fight those 2.