The goal of Bounty Hunting is to provide a repeatable activity for limited and useful rewards that ties into a story happening that will make players feel more included in the goings on in the world.
This event provides players with the opportunity to participate in an ongoing story. Finding sorcerers to hunt gets players out in the world, and we can use sorcery to turn each encounter into a bit of a spectacle.
The multiple win conditions (you win by looting Sorcerous Heads from their corpse, and you win even when by bringing them in alive) means players have a choice as to how difficult they want to make the content.
The end goal is to deal with the target dead or alive.
Dead
Once a target is dead, an object (in this case, a Sorcerous Head) drops on the corpse alongside the usual. Since you were unable to secure the target, you can turn in Sorcerous Heads for Bounty Sacks that will contain various resources.
Alive
The player secures the target like they would any other thrall. There should be an incredibly obvious place to pull the target onto, which will take the target and give the player an item with the reward in it.