How To 

How to Become Thane of Dawnstar in Skyrim

You can become a thane of all of the different holds in Skyrim as the dragonborn. Here is how you can earn this title in the hold of Dawnstar.

Step 1)Complete the quest Waking Nightmare.
Speak to Erandur in the Windpeak inn to begin this quest. It seems that the people of Dawnstar have not been sleeping well, and this priest of Mara knows why and how to stop it, but he needs your help. This quest is fairly straightforward, you'll spend most of it following Erandur around and killing orcs and hostile priests. Once you reach the end of this quest you'll have the choice of either killing Erandur, or protecting him so he can complete his spell. If you choose to protect him you can recruit him as a follower for free, but if you choose to kill him you will receive a powerful daedric artifact. The choice is yours, both will still allow you to become a thane here.

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Step 2)Complete three odd jobs around town.
Sure, you saved the whole town from terrible nightmares each night, but does that really mean you are worthy and have proven yourself to this town to be given the title of Thane? Apparently not. Wander around town and chat with the citizens, a few will have odd jobs and quests for you to do. In total there are about eight small quests you can do around town, you'll need to complete at least three of these.

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Step 3)Slay a giant.
Alright, now the townsfolk know you and like you, and you saved them from nightmares every night. Clearly you've proven yourself! Go talk to the Jarl and he'll award you with.. Another quest to prove yourself. There's no pleasing some people. You'll need to be at least level 22 to be given a quest to go and slay a giant.Finding one shouldn't be too hard, just look around for any of the various giant camps around the world and you're sure to bump into one or two, and maybe a mammoth. Be prepared to deal with that.

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Alright, now you've actually finished proving yourself! Go back and chat with the Jarl and he'll award you with the title of thane as well as a blade of the pale for all that trouble.