They allow you to raise your five character attributes:
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You can also use the experience points to increase health and mood, but as those can be increased by other means, avoid wasting experience points on them!
Read more at popomundo.com
If you are lazy all week, you get 1 XP. Depending on how many different things do under the week, you can get up to 3.
Things known to contribute to XP gain:
Jam sessions
Playing shows (especially doing a stage event, which you havn't mastered completely yet)
Finishing a song that turned out well.
Taking pictures of people on the paparazzi list.
Healing people
Putting out a fire.
As a police or SWAT officer: arrest people
If you are a mayor: holding a speech on TV.
If you are a judge: judging.
(criminal activities (e.g. spraying a tag or stealing))
Useing Book of Back Stage Experiences.
Some exceptions:
New Popomundo characters get 2 XP points on every update for the first 22 days of their lifes in Popomundo. These are called Newbie Experience points. Newbies can also earn the normal XP points. Which means, on every sunday, they get a change to win a total of 5 XP points for once a week.
Children get XP randomly throughout their first 16 years.
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