The first fax machine had no value. It couldn't send a fax to anyone. It was, from a value perspective, useless.
The second fax machine added value to the first because it now had something which could receive faxes. The third added value to the first two and received value from them in the network as well. As each fax machine came into existence, the value it added was nonlinear. The more fax machines that existed, the more value each of them had.
Many things in life are like that.