If you purchase a hosting server with the intention to start your personal web hosting company and to resell plans to various other people, you may also need to sell domain names, in order to give your clients the option to buy everything they need for their new Internet site from just a single place. To become a licensed registrar involves thousands of dollars along with tons of documentation, so the most effective solution is to register for a domain reseller account with a pre-existing registrar company. Your reseller site will be connected to that account via the registrar's API. To use such an account has a lot of pros - all your customers can obtain and to control new domain names without any difficulty; the cost of a new registration is lower as compared to what you'd have to spend as an end customer; and you'll be able to start reselling right away. The registrar businesses which sell domain reseller accounts almost always ask for some money as a deposit.