If you purchase a web hosting server with the intention to start your own hosting company and to resell packages to various other people, you may as well need to sell domains, so as to give your customers the option to purchase everything they need for their new website from one place. To become a licensed registrar involves thousands of dollars as well as a lot of documentation, so the most convenient solution is to register for a domain reseller account with an existing registrar company. Your reseller site will be connected to that account by using the registrar's API. Employing this type of account has a large number of benefits - all of your customers can buy and to take care of new domain names comfortably; the cost of a brand new registration is lower when compared to what you'd have to spend as an end customer; and you will be able to start reselling right away. The registrar companies that supply domain reseller accounts in most cases need an amount of money as a deposit.