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Well, KaVir beat me to my response on this, but since I had it all written down already, I'll comment anyhow.
Most Muds define player advancement by xp, level or both. Even level-less muds usually have some equivalent to xp that defines advancement, although the nature of it may be hidden from the mortals for RP reasons.
Not all players like to kill a large number of mobs just to advance. And not all players like to solve Quests either; they may not have the inclination, patience, intelligence, language skills etc. for it.
But if you offer a variety of options to advance your char, you also give the players a free choice what they want to get good at and spend their time on. In our Mud for instance you get xp not only from killing but also from fishing, farming, gardening, lumberjacking, mining, golddigging, gemcutting, tinkering, archaeology, collecting, trading, and questing.
You can also convey exp or training points into gold or Quest tokens and the other way around.
That is what I mean by presenting a free choice.
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