It is very simple: You get 10% on all of the rewards your friends earn. If for example one of your friends get paid $100 from a VIP program he signed up for, then you get $10. To clarify, you are paid 10% of what your friend gets paid, not on gross rake.
Both the cash and points you earn from having referred friends are paid on the 10th of the following month to your Poker Club account. From there you can request a withdrawal in a number of ways such as NETELLER, Moneybookers or get free poker gifts