When you buy a web hosting server with the intent to start your individual web hosting company and to resell plans to other people, you may also want to sell domains, so that you can give your customers the chance to buy everything they need for their new site from a single place. Becoming a licensed registrar involves thousands of dollars as well as tons of documentation, so the most effective solution would be to register for a domain name reseller account with a current registrar company. Your reseller site will be linked to that account by using the registrar's API. Using such an account has a large number of pros - all your customers can acquire and to take care of new domains with ease; the price of a new registration is lower compared to what you'd need to spend as an end customer; what's more you can start reselling without delay. The registrar companies which provide domain reseller accounts usually want an amount of money as a deposit.