When you get a hosting server with the intent to start your personal hosting company and to resell plans to various people, you may also need to sell domains, so as to give your customers the chance to acquire everything they want for their new Internet site from just a single place. Being a licensed registrar involves thousands of dollars as well as a considerable amount of documentation, so the easiest 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. To use such an account has a variety of pros - all of your customers will be able to acquire and to control new domains with ease; the cost of a new registration will be lower compared to what you'd need to pay as an end customer; also you can start reselling instantly. The registrar companies that sell domain reseller accounts in most cases want a certain amount of money as a deposit.