When you acquire a website hosting server with the idea to start your own hosting company and to resell packages to various people, you may also want to sell domains, so that you can give your clients the chance to purchase everything they need for their new site from one place. Being a licensed registrar involves thousands of dollars plus a lot of documentation, so the easiest solution is to register for a domain reseller account with an existing registrar company. Your reseller site will be linked to that account by using the registrar's API. To use this kind of account has various benefits - your customers can purchase and to control new domain names with ease; the cost of a new registration will be lower compared to what you'd have to pay as an end customer; and you are able to start reselling instantly. The registrar companies that provide domain reseller accounts usually want a certain amount of money as a deposit.