When you obtain a hosting server with the intent to start your individual website hosting company and to resell packages to other people, you may also wish to sell domain names, to give your clients the option to buy everything they want for their new website from just a single place. Becoming a licensed registrar involves thousands of dollars and a lot of documentation, so the easiest solution is to sign up for a domain name reseller account with an existing registrar company. Your reseller website will be connected to that account via the registrar's API. Using this kind of account has lots of benefits - all your customers are able to purchase and to take care of new domain names without any difficulty; the price for a brand new registration is lower as compared to what you'd have to pay as an end customer; what's more you are able to start reselling at once. The registrar businesses which supply domain reseller accounts often require some money as a deposit.