The information in this report lets you see which domains (and pages in those domains) are referring traffic to your site, how much traffic they're referring, which landing pages are the most popular referral destinations, and the extent to which those referred users interact with your site.
If you're trying to build a traffic stream from referrals, you want to know which domains are successful sources. For example, if you're posting videos on YouTube in order to raise brand awareness, you want to see whether those videos are driving users to your site, and consequently whether youtube.com shows up as a top source of referrals.
This report lets you see traffic levels from expected sources, but also lets you see whether there are unexpected sources, such as a product review or news story you didn't know about, or a popular blogger who discovered your site.
If you want to investigate a traffic source, you can click a source domain to see the specific pages in that domain that are driving traffic (Referral Path). You can append the referral path to the domain name to see the referring page in order to see the context in which your site is linked.
You also want to know where users are arriving as the result of referrals. View data in the t able by the Landing Page dimension to see these URLs. Links from referring sites are often to pages deep within your site, rather than to your home page, so you want to be sure those pages serve the overall purpose of your site. For example, if a landing page is deep within your site, you want to provide links back out to top-level pages, along with visual or textual reinforcement of the overall purpose of your site.