When you buy a hosting server with the purpose to start your personal hosting company and to resell plans to various people, you may as well want to sell domain names, to give your clients the opportunity to purchase everything they need for their new Internet site from just a single place. Becoming a licensed registrar involves thousands of dollars as well as a lot of documentation, so the easiest solution is to register for a domain name reseller account with a current registrar company. Your reseller site will be connected to that account by using the registrar's API. Using this kind of account has various benefits - all your customers are able to buy and to control new domains comfortably; the cost of a brand new registration is lower as compared to what you'd have to pay as an end customer; last but not least you are able to start reselling immediately. The registrar businesses that supply domain reseller accounts generally need a certain amount of money as a deposit.