When you get a hosting server with the purpose to start your individual web hosting company and to resell packages to various other people, you may as well want to sell domain names, so that you can give your customers the chance to buy everything they want for their new website from one place. Being a licensed registrar involves thousands of dollars along with a considerable amount of documentation, so the most effective solution is to sign up for a domain name reseller account with a pre-existing registrar company. Your reseller site will be linked to that account by using the registrar's API. To use this type of account has various advantages - all of your customers are able to purchase and to take care of new domains effortlessly; the price of a new registration will be lower as compared to what you'd need to spend as an end customer; what's more you're able to start reselling at once. The registrar businesses which supply domain reseller accounts often need a certain amount of money as a deposit.