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How interactions between individuals contribute to the emergence of complex societies is a major question in behavioural ecology. Nonetheless, little remains known about the type of immediate social structure (i.e. social network) that emerges from relationships that maximize beneficial interactions (e.g. social attraction towards informed individuals) and minimize costly relationships (e.g. social avoidance of infected group mates). We developed an agent-based model where individuals vary in the degree to which individuals signal benefits versus costs to others and, on this basis, choose with whom to interact depending on simple rules of social attraction (e.g. access to the highest benefits) and social avoidance (e.g. avoiding the highest costs). Our main findings demonstrate that the accumulation of individual decisions to avoid interactions with highly costly individuals, but that are to some extent homogeneously beneficial, leads to more modular networks. On the contrary, individuals favouring interactions with highly beneficial individuals, but that are to some extent homogeneously costly, lead to less modular networks. Interestingly, statistical models also indicate that when individuals have multiple potentially beneficial partners to interact with, and no interaction cost exists, this also leads to more modular networks. Yet, the degree of modularity is contingent upon the variability in benefit levels held by individuals. We discuss the emergence of modularity in the systems and their consequences for understanding social trade-offs.