If you acquire a hosting server with the idea to start your individual hosting company and to resell packages to various other people, you may also need to sell domain names, so as to give your clients the chance to buy everything they want for their new site from just a single place. To become a licensed registrar involves thousands of dollars as well as a lot of documentation, so the easiest solution is to sign up for a domain reseller account with a current registrar company. Your reseller website will be connected to that account by using the registrar's API. Using such an account has lots of benefits - your customers will be able to get and to take care of new website names without any difficulty; the price for a brand new registration is lower as compared to what you would have to spend as an end customer; last but not least you're able to start reselling immediately. The registrar companies which supply domain reseller accounts generally ask for some money as a deposit.