If you obtain a website hosting server with the intent to start your very own hosting company and to resell packages to various other people, you may as well want to sell domains, to give your clients the option to get everything they want for their new site from a single place. Becoming a licensed registrar involves thousands of dollars plus a lot of documentation, so the most effective solution is to register for a domain name reseller account with an existing registrar company. Your reseller website will be linked to that account by using the registrar's API. To use this kind of account has many benefits - all your customers are able to get and to manage new website names effortlessly; the price of a brand new registration will be lower compared to what you would need to spend as an end customer; also you'll be able to start reselling right away. The registrar companies which sell domain reseller accounts often ask for some money as a deposit.