When you acquire a server with the intent to start your personal web hosting company and to resell packages to various people, you may also want to sell domains, so as to give your clients the opportunity to buy everything they want for their new website from just a single place. Becoming a licensed registrar involves thousands of dollars along with a lot of documentation, so the easiest solution is to sign up for a domain reseller account with a pre-existing registrar company. Your reseller Internet site will be connected to that account via the registrar's API. Using such an account has many different pros - your customers can obtain and to manage new domain names without any difficulty; the cost of a new registration will be lower compared to what you would need to pay as an end customer; last but not least you will be able to start reselling instantly. The registrar companies that supply domain reseller accounts almost always want an amount of money as a deposit.