When you purchase a hosting server with the intention to start your very own web hosting company and to resell packages to other people, you may also wish to sell domains, to give your customers the option to get everything they need for their new site from one place. To be a certified registrar involves thousands of dollars along with a lot of documentation, so the most convenient solution would be to register 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. To use this type of account has many benefits - all of your customers are able to acquire and to manage new domains with ease; the cost of a new registration will be lower as compared to what you would need to pay as an end customer; last but not least you are able to start reselling without delay. The registrar companies that provide domain reseller accounts generally want a certain amount of money as a deposit.