If you buy a web hosting server with the purpose to start your own hosting company and to resell plans to other people, you may as well wish to sell domains, so as to give your customers the chance to obtain everything they need for their new website from a single place. To become a licensed registrar involves thousands of dollars along with tons of documentation, so the most convenient solution is to sign up for a domain reseller account with an existing registrar company. Your reseller website will be connected to that account via the registrar's API. To use this kind of account has a large number of benefits - your customers can buy and to manage new domains without any difficulty; the price of a new registration is lower as compared to what you'd have to pay as an end customer; also you're able to start reselling right away. The registrar companies that offer domain reseller accounts often need an amount of money as a deposit.