When you purchase a web hosting server with the purpose to start your own web hosting company and to resell packages to various people, you may as well wish to sell domain names, in order to give your customers the chance to purchase everything they want for their new site from a single place. Being an accredited registrar involves thousands of dollars along with tons of documentation, so the simplest solution is to sign up for a domain name reseller account with a pre-existing registrar company. Your reseller Internet site will be connected to that account through the registrar's API. Using this kind of account has various pros - your customers can purchase and to manage new domains comfortably; the cost of a new registration is lower compared to what you would have to spend as an end customer; what's more you will be able to start reselling instantly. The registrar businesses which provide domain reseller accounts usually want an amount of money as a deposit.