I suggest something like raising skill Levels, with perks.
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My ideal in skill progression system:
You start off with the lowest possible of a skill level, and you do random jobs that makes you more experienced in that skill, and you advance your skill level as you get more experienced in that skill, until you finally reach the next level of mastery in that skill, and are able to choose a perk suitable for your current level of mastery in that skill, and so on...
At first it is easier to progress your skill levels, but gradually it becomes harder to do that, as each level requires you to repeat those tasks more or find harder tasks to provide a larger boost in the experience gained.
If you can find a skill master that knows of a particular trick/perk related to that skill, and is willing to reach you and you have enough experience in that skill, and maybe attend a quest for the master or help him with a problem, then he would teach you the skill perk for a price.
Those perks are dependent on each other like a branching tree, so in order to learn the higher level perk; you have to learn the lower level perk on that branch.
:)
We have guilds, just like just we have skills.
Those guilds have ranks that we can advance into, like we can raise our skill mastery levels.
We have a great quest system called "Radiant Story", which lets developers design "Quest Templates" in order to provide for us quests that have changeable parameters and/or let us have semi-random quests.
Does this anology give you any interesting ideas about the guilds and how to advance in them?
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If we translate my ideals in skill progression into a system for the guilds, it would become something like this:
You can not join guilds that require some minimum skill requirement, or other perquisites, until you provide those perquisites.
After you join a guild, you start at the pit bottom of the ranks available in that guild, and you are introduced to some local members, and given some sign/insignia/letter/item which would let other guild members or even other people recognize you around the province.
You can attach the insignia to your gear/mount and carry the other items with you, and any time certain members of the guild recognize you as a member of their own guild, they might have a semi random quest available for you to attend, and depending on the difficulty of the task related to your rank in the guild, you gain a bit of standing and fame with the guild.
There can also be some notice boards in some places that could potentially offer new semi-random tasks to complete, and report the result to a member to gain the bonus and additional guild standing. Thanks Glorious for the idea.
At some points, some members might have some manually designed specific quests that would be related to the general story of the guild and its members, and those specific quests would provide more boost with guild standing, in general, and the person who gave you the task in particular.
When you gain enough standing with a guild to advance in rank, you might be approached by some specific members with some special tasks, and the offering of a higher level rank if you could deliver, and provided the perquisite skills and/or items, and the like.
And it was only an example, and this could happen by any other possible method, depending on the situation, and the guild.
The first ranks would be easy to reach, but they would start to require more and more dedication for the guild, and maybe skill requirements, and at some ranks, your specific item/signet/insignia would have to be changed to reflect your advanced rank.
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In a local guild, your rank would be known to all the member, but if you have no attended any quest in another base, they would not know you unless you show off your signet/insignia, but after the first quest, you would be known in the new place as well.
People other than your guild members could recognize your signet/insignia as well, and it could affect their behavior toward you, positively or negatively, depending on their relation with your guild, and the high ranks could impress some people, and affect the outcome of some interactions/quests with them.
At each rank, you could gain some perks from the guild, like new places to rest, or new types of interactions with the members, like new services available, and the like...
Or maybe a guild master decides to teach you an actual skill perk, or any other "Fallout style" perks, or maybe give you a useful item, and so on...
Each new rank can unlock a few more types of repeatable quests that could be a bit harder than previous quests with more reward and more gain in guild standing when completed, and those gains can also depend on your performance and how well you followed the guilds ideals while completing the task.
And maybe if you decide to ignore your guild for a long time, or join a rival guild, and work for them, you might start to loose standing with your ex-guild until you actually loose a rank, and in your next encounter with them you would be informed of the fact, but in lower ranks this set back is so slow that it is almost non existent, but in higher ranks, especially in the highest ranks, this would become a fact to be considered.
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I particularly like the idea of demotions if you neglect the guild, or work for a rival. This would make it much harder to rise to the top, since it would require your constant attention. Also it would make it much harder to become head of all the guilds, since you would be dividing your time between them, and while working for one guild you may lose standing in another. However I think you should only be punished for neglect at the very high ranks, and once you had been demoted out of those you can't sink any lower without actively damaging the guild (such as by killing a member or stealing guild property.) It would be very frustrating to take time out of a guild to do the main quest, to come back and discover I'm no better than an initiate again.
I particularly like the idea of demotions if you neglect the guild, or work for a rival. This would make it much harder to rise to the top, since it would require your constant attention. Also it would make it much harder to become head of all the guilds, since you would be dividing your time between them, and while working for one guild you may lose standing in another. However I think you should only be punished for neglect at the very high ranks, and once you had been demoted out of those you can't sink any lower without actively damaging the guild (such as by killing a member or stealing guild property.) It would be very frustrating to take time out of a guild to do the main quest, to come back and discover I'm no better than an initiate again.
Reaching the ultimate rank in a guild would be possible in theory, (in some guilds), but in practice, it would require a lot of dedication, and maybe devilry in manipulating the other members, and so on... But reaching that rank could have some significant perks for your character that would be worth all the time and effort spent on it, and showing off the highest signet/insignia to other people would greatly affect their behavior toward your character.
This way no one can enter a guild and perform several quests and become the guild master and be done with it, as in the middle you have to perform a lot of initially menial tasks, and gradually raise your standing with the guilds and show a lot of dedication and provide the perquisite qualities and bribes, and persist and avoid helping the rival guilds and do not ignore them for long times, until you reach places that you want.
And in the mean while you would gain a lot of perks and income from the guild, and its members.
Edit: As I saw some common points between this thread and http://www.gamesas.com/index.php?/topic/1149601-clanguild-insignia about the guilds, and their probable signets/insignias, I decided to borrow some ideas from there to include here.
P.S. http://www.gamesas.com/index.php?/topic/1171001-my-take-on-guilds is another interesting thread about guilds and their relation with each other, by Badprenup.