When you obtain a web hosting server with the purpose to start your individual web hosting company and to resell plans to various other people, you may also wish to sell domain names, in order to give your customers the option to buy everything they want for their new site from one place. To become a licensed registrar involves thousands of dollars as well as tons of documentation, so the most effective solution is to register for a domain reseller account with a pre-existing registrar company. Your reseller site will be linked to that account via the registrar's API. Using this type of account has a lot of advantages - all of your customers are able to acquire and to take care of new domains comfortably; the price of a brand new registration will be lower compared to what you would need to spend as an end customer; what's more you're able to start reselling at once. The registrar companies that supply domain reseller accounts often need an amount of money as a deposit.