When you buy a website hosting server with the intent to start your individual website hosting company and to resell plans to various people, you may also need to sell domain names, so as to give your customers the chance to acquire everything they need for their new Internet site from just a single place. To be a licensed registrar involves thousands of dollars along with tons of documentation, so the most convenient solution is to sign up for a domain name reseller account with an existing registrar company. Your reseller site will be connected to that account via the registrar's API. To use such an account has numerous benefits - all of your customers are able to get and to manage new domain names without difficulty; the cost of a brand new registration will be lower as compared to what you'd have to pay as an end customer; last but not least you can start reselling at once. The registrar businesses which sell domain reseller accounts usually require an amount of money as a deposit.