When you buy a web hosting server with the idea to start your individual website hosting company and to resell packages to various other people, you may as well want to sell domain names, to give your customers the chance to get everything they need for their new site from a single place. Becoming a licensed registrar involves thousands of dollars along with a considerable amount of documentation, so the most convenient solution is to sign up for a domain name reseller account with a pre-existing registrar company. Your reseller site will be linked to that account through the registrar's API. Using this type of account has various benefits - all of your customers are able to buy and to take care of new domain names effortlessly; the cost of a brand new registration will be lower compared to what you'd need to spend as an end customer; also you will be able to start reselling at once. The registrar businesses which supply domain reseller accounts almost always ask for a certain amount of money as a deposit.