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http://mountandblade.wikia.com/wiki/Renown
Honor is more like a Karma Meter. It is a measure of how honorable or dishonorable you are known to be. It governs relations with other lords (and n ot always for the better; the Dishonorable hate Honorable people and vice versa), your chance of avoiding a bounty on your head, chances of being appointed Marshal, and ability to seal mercenary contracts.
http://mountandblade.wikia.com/wiki/Honor
So by the strategy you have adopted, you would be gaining reknown (for winning battles and doing whatever), but losing honor (for raiding villages). Which might affect how you are being treated.
I personally would abstain from raiding villages and instead focus on questing and trading to build up my finances, and then using the finances to get my top level gear. I would also avoid getting early mercenaries and go it alone save for with companions. But that's just me.
I hope that helps.
@Turtler or any others that may respond. In response to:
"I personally would abstain from raiding villages and instead focus on questing and trading to build up my finances, and then using the finances to get my top level gear. I would also avoid getting early mercenaries and go it alone save for with companions. But that's just me."
The only thing i havent figured out with this method is, how do you quest and avoid raiding villiages? Isnt it not a requirment at some point, once you join the faction to either raid a cart or 3 villiages? I supposes thats different than constantly raiding villiges though!?
As far as avoiding paying for merc and purchase companions, i guess i didnt think i could win battle with only 3-7 in my group/army vs having the 30+ mercs...? Thanks again :)
I also had no trouble enlisting in the Swedish army (amongst others) without having a quest like that.
Regarding the numbers, I think it depends. Ultimately you are going to ened more people when youa re actually fighting wars. But in terms of stomping the average outlaw group, you can do that with proper manuevering and equipment, even by yourself. A hill can soak up a lot more musket balls than your mercenaries, after all.
That happens sometimes. But it's temporary. Keep asking and after a few days they will be found. It seems to happen if they are captured and thrown in jail. Then everyone is at a loss as to where they are.
The game is rather slow at the start and you have to really pick your fights, but slowly build up your army, picking bigger and bigger fights. I like to use a 100% horse army so that I can flee from the battles I know I can't win and easily catch the enemies I know I can beat. At about 100 or so renown you can offer youself as a merc to pretty much any lord you are neutral to. That will get you access to much better troops in the cities and forts. At 200 renown you can become a vassal to one of the kings and be granted a fief. As your renown and your "income" increase you will suddenly notice you are getting more and more renown quite easily.
To me the most important skills that you NEED to give your main character are, Leadership, Horse riding, Pathfinding, Shooting from horseback, Training, Inventory management, prisioner management, and if you want all the companions you need persuasion as 2 will often be wanting to leave. As you can see you may need a rather high intelligence character to get enough points.