When you buy a website hosting server with the idea to start your very own website hosting company and to resell packages to various other people, you may also wish to sell domain names, so as to give your clients the option to acquire everything they want for their new website from a single place. Becoming an accredited registrar involves thousands of dollars as well as a lot of documentation, so the simplest solution would be to sign up for a domain reseller account with a pre-existing registrar company. Your reseller site will be connected to that account through the registrar's API. To use such an account has a variety of benefits - all your customers will be able to buy and to take care of new domains without any difficulty; the cost of a brand new registration will be lower compared to what you would have to pay as an end customer; also you are able to start reselling instantly. The registrar businesses which supply domain reseller accounts almost always want an amount of money as a deposit.