Why it matters for your business
Domain authority is useful as a quick, comparative benchmark. It gives you a rough sense of how your site stacks up against competitors and helps you judge whether a potential backlink is coming from a strong site or a weak one. It matters because relative strength is a real part of SEO. But it should be treated as a directional guide, not a target in itself. The honest framing is that domain authority is a helpful estimate created by SEO tools, not a number Google publishes or rewards.
How it works
Who calculates it
Domain authority is a metric created by SEO software companies. Different tools have their own versions, such as Moz Domain Authority, Ahrefs Domain Rating and Semrush Authority Score. They all use a logarithmic scale, usually from 1 to 100, where moving from 20 to 30 is far easier than moving from 70 to 80.
What feeds the score
The score is driven mostly by your backlink profile: how many sites link to you, how strong those sites are, and how relevant they are. It is a prediction of ranking ability built from link data, not a measurement of your actual rankings.
How to use it well
Use domain authority to compare yourself against direct competitors and to vet link opportunities. Do not obsess over the exact number. A site with a lower score that ranks well for terms your customers search is in a stronger commercial position than a high-scoring site that ranks for nothing useful.
A common mistake
The biggest mistake is treating domain authority as a Google ranking factor and chasing the number directly. Google has stated it does not use any third-party authority score. A business can lift its domain authority and still not rank for the terms that bring in customers. Focus on rankings and enquiries for commercially relevant searches. Domain authority is a thermometer, not the thing you are trying to grow.