Internet marketing is when you drive traffic to a link/site, you have no connection with the people who click the link you just want to get it out to as many people as possible.
Network marketing is when you personally recommend a offer to people around you, and that is the " from mouth to mouth" marketing that all companys love.
On FB for example companys place a offer with a chance for people to win something if they share the link. If a lot of people share it with their contacts and those contacts also share all of a sudden the companys offer is viral and get seen all over the world without them having to do much more then pick a winner :)
When that happens internetmarketing and networkmarketing is a perfect mix!
The company itself was doing internetmarketing when placing the link on FB but when people started to share the link they (without thinking about it) became networkmarketers for that company :)
The company ofcourse is thrilled about that and it is the best marketing you can get.
People telling people is always better then companys telling people ....
On that example the networkmarketers do not get paid for the marketing they do even if the company profit from it .... in mlm the company pays you... so if you like a product and tell others to try it and they do the mlm company will give you commission for that.
There is many ways to do marketing and all ways are good except the bad ones ;)

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