A simple example
If one website links to you from ten pages, you may have ten backlinks but one referring domain. If ten different websites each link once, you have ten backlinks and ten referring domains.
Why unique domains matter
Referring-domain counts reduce the effect of repeated sitewide or multi-page links when you are trying to understand how many separate sites cite a target.
Why neither metric proves quality
Ten irrelevant or automated domains are not automatically better than one highly relevant editorial source. Both counts need source-level context.
Use both in monitoring
Track backlink count for changes at the link level and referring domains for diversity. Then inspect relevance, purpose and acquisition method before drawing conclusions.
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