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It's a search engine (like yahoo or google) that randomly rewards you "swagbucks." You can also earn them by watching videos, playing games, completing surveys, etc. but using their search engine takes virtually no extra time or effort. When you accrue enough swagbucks, you can redeem them for gift cards (Amazon giftcards are my personal fave) or other rewards.
Swagbucks are awesome! I've racked up $40 worth of Amazon gift cards in two months. (You need 450 swagbucks for one $5 Amazon gift card). The best tip I can pass along is to download the Swagbucks toolbar. Then, anytime you're going to a regular site (FB, JM, your email) type it in the toolbar instead of just typing in the site address. This way, you'll also randomly get points for that in addition to whatever searches you might do.
I love it! I also get a ton of Amazon gift cards I downloaded the toolbar, and it is crazy how many swagbucks I get just from that. I also always take the daily polls, and do my searches. It really doesn't take much effort at all.