If you purchase a hosting server with the purpose to start your individual hosting company and to resell packages to various people, you may also wish to sell domains, so as to give your clients the chance to buy everything they want for their new site from one place. Being an accredited registrar involves thousands of dollars plus a lot of documentation, so the most effective solution is to register for a domain name reseller account with an existing registrar company. Your reseller website will be linked to that account through the registrar's API. Using this type of account has many advantages - all your customers can purchase and to manage new domain names without any difficulty; the price of a brand new registration is lower compared to what you'd have to spend as an end customer; what's more you're able to start reselling without delay. The registrar companies that provide domain reseller accounts often want some money as a deposit.