If you obtain a server with the intent to start your own website hosting company and to resell plans to various people, you may as well wish to sell domains, in order to give your customers the opportunity to purchase everything they need for their new site from just a single place. Becoming a licensed registrar involves thousands of dollars plus a lot of documentation, so the most effective solution is to sign up for a domain name reseller account with a pre-existing registrar company. Your reseller site will be connected to that account by using the registrar's API. Employing this type of account has many different pros - your customers can get and to manage new domain names comfortably; the cost of a new registration will be lower as compared to what you'd have to pay as an end customer; last but not least you are able to start reselling instantly. The registrar businesses which provide domain reseller accounts often ask for a certain amount of money as a deposit.