When you buy a website hosting server with the intention to start your very own hosting company and to resell packages to various other people, you may also wish to sell domain names, so that you can give your clients the option to buy everything they need for their new Internet site from a single place. To be a licensed registrar involves thousands of dollars and a lot of documentation, so the most convenient solution is to register for a domain name reseller account with an existing registrar company. Your reseller website will be connected to that account by using the registrar's API. To use such an account has lots of advantages - all your customers are able to obtain and to take care of new domains effortlessly; the cost of a brand new registration is lower when compared to what you'd have to pay as an end customer; last but not least you're able to start reselling instantly. The registrar companies which supply domain reseller accounts often require an amount of money as a deposit.