When you purchase a hosting server with the idea to start your individual hosting company and to resell plans to various other people, you may also want to sell domain names, to give your clients the opportunity to obtain everything they need for their new Internet site from one place. Becoming a licensed registrar involves thousands of dollars and a lot of documentation, so the most convenient solution would be to sign up for a domain name reseller account with a pre-existing registrar company. Your reseller site will be linked to that account via the registrar's API. Employing this type of account has a large number of pros - your customers are able to obtain and to take care of new domain names without any difficulty; the price for a new registration will be lower when compared to what you would have to spend as an end customer; last but not least you will be able to start reselling instantly. The registrar businesses that sell domain reseller accounts almost always want a certain amount of money as a deposit.