Recently, mega-constellations with a massive number of low Earth orbit (LEO) satellites are being considered as a possible solution for providing global coverage due to relatively low latency and high throughput compared to geosynchronous orbit satellites. However, as the number of satellites and operators participating in the LEO constellation increases, inter-satellite interference will become more severe, which may yield marginal improvement or even decrement in network throughput. In this article, we introduce the concept of satellite clusters that can enhance network performance through satellites' cooperative transmissions. The characteristics, formation types, and transmission schemes for the satellite clusters are highlighted. Simulation results evaluate the impact of clustering from coverage and capacity perspectives, showing that when the number of satellites is large, the performance of clustered networks outperforms the unclustered ones. The viable network architectures of the satellite cluster are proposed based on the 3GPP standard. Finally, the future applications of clustered satellite networks are discussed.