A new quest will pop up once your first pet reaches level 3. It will send you to either Audrey Burnhep in Stormwind or Varzok in Orgrimmar. These trainers will offer a quest chain to battle specific Pet Tamer NPCs on each continent. Defeating each of these NPCs will reward a nice chunk of experience for your pets, as well a Sack of Pet Supplies (which has the chance to drop the Porcupette companion, among the always-useful pet bandages).
Each battle that you win will yield experience for each pet that participated. However, deceased companions will not receive any experience (so make an effort to keep them alive by swaping in a different pet). Experience gains are based on your pet's level compared to the wild pet. Defeating a higher level opponent will grant more experience than a much lower level one, but be ready for a tough fight!