When you buy a web hosting server with the intention to start your personal website hosting company and to resell plans to various people, you may as well want to sell domain names, to give your customers the chance to purchase everything they need for their new site from a single 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 a pre-existing registrar company. Your reseller website will be linked to that account through the registrar's API. Employing such an account has many pros - your customers will be able to acquire and to take care of new website names effortlessly; the cost of a new registration will be lower compared to what you would need to spend as an end customer; what's more you are able to start reselling immediately. The registrar companies which provide domain reseller accounts generally ask for some money as a deposit.