what is karma and how do you increase it without paying real $$

Karma is basically your approval rating as a player of the site, when you post something someone likes, they might give you karma, if you post something they do not, they might take it away.

What exactly you have to do to gain or lose it depend on each individual user able to give or take as some are more frugal with Karma points while others are overly generous with their's.

I have to add to Whitewolfs comment..

You have to be a premium member to give or take karma to a member, other then that I have nothing else to say other then this game rocks.