If you acquire a website hosting server with the intention to start your very own web hosting company and to resell packages to various other people, you may as well want to sell domain names, so as to give your customers the chance to get everything they need for their new site from one place. Becoming a licensed registrar involves thousands of dollars along with a considerable amount of documentation, so the most convenient solution would be to register for a domain reseller account with an existing registrar company. Your reseller website will be connected to that account through the registrar's API. Employing this type of account has many pros - all your customers are able to purchase and to control new website names without any difficulty; the price for a new registration will be lower compared to what you'd need to pay as an end customer; last but not least you're able to start reselling right away. The registrar companies that supply domain reseller accounts usually need a certain amount of money as a deposit.