When you purchase a website hosting server with the purpose to start your own web hosting company and to resell plans to various people, you may also wish to sell domains, so that you can give your customers the option to obtain everything they want for their new site from just a single 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 a pre-existing registrar company. Your reseller site will be connected to that account through the registrar's API. To use this type of account has various benefits - all of your customers can obtain and to control new website names effortlessly; the price of a brand new registration is lower compared to what you'd have to pay as an end customer; also you'll be able to start reselling instantly. The registrar businesses which provide domain reseller accounts generally ask for a certain amount of money as a deposit.