A networking system for referrals that connects businesses (vendor) with their customers (member) and potential customers (prospective member) across a network. Once a vendor has joined the network, the vendor may invite other members to join. A member can then refer a prospective member to the vendor. If the prospective member purchases goods or services from the vendor, the vendor will confirm the sale by paying a referral fee to the network. The network distributes said referral fee according to the connection relationship of the members of the network.