You don't need real money to buy a second hero. If you want to buy him on a 1st level, it's completely free. Just set his initial level to 1 and voila!
After level up you won't get any points to distribute, but basic abilities of your hero will grow significantly (will be stronger on the Arena, able to take more troops to lairs, etc.). Experienced hero ca use more powerful equipment. At certain levels special content in Premium Shop is unlocked too.
Arena fights should regenerate every 24h. Unfortunately, we experience a bug right now, preventing that regeneration (it was corrected in next version - 1.17.; the game should be updated to that version next week).
For the time being, try to fight in lairs too! It's also fun, I reckon. :)
Guys, give this game a chance :). Play a bit and then, when you know why your battles were not random, decide, if you like it or not. Have a good time!