If you buy a website hosting server with the intention to start your personal hosting company and to resell packages to other people, you may also need to sell domains, in order to give your customers the option to buy everything they want for their new site from a single place. Being a licensed registrar involves thousands of dollars as well as tons of documentation, so the most convenient solution would be to register for a domain reseller account with an existing registrar company. Your reseller Internet site will be connected to that account through the registrar's API. To use this kind of account has a lot of pros - all your customers can purchase and to manage new domain names comfortably; the cost of a brand new registration will be lower compared to what you'd have to pay as an end customer; what's more you're able to start reselling immediately. The registrar companies which provide domain reseller accounts usually require a certain amount of money as a deposit.