Incentivised Traffic

Hi Warriors

I've got a website which sells personalised cards and key tags (In Case of Emergency)
I host it myself, and it runs in front of a database too, so I've added my own little marketing database behind it which can serve up A/B pages, and it tracks a customer right through to payment return (I've only implemented PayPal thus far)

My idea is that somebody sends relevant traffic to my site - somebody who already has the right customers at a blog or website. By adding a querystring to the link, and thanks to cookies at my site, anybody coming in who converts can be viewed in an online report, which the referrer can log on anytime to see all of the traffic which they have sent. This way, can I pay the sender something like £1 every time a card is sold? Would a referrer prefer payment by click rather than conversion?

I've never done anything like this before, I had built up this site with the intention of making a PPC campaign, which I will still do - I should get a reasonable quality score now I've updated the website and I've read a book about Adwords too

Any advice most appreciated