When you purchase a hosting server with the intention to start your personal hosting company and to resell packages to various other people, you may also want to sell domain names, so as to give your customers the chance to buy everything they need for their new website from a single place. Being an accredited registrar involves thousands of dollars as well as a considerable amount of documentation, so the simplest solution would be to sign up for a domain reseller account with an existing registrar company. Your reseller Internet site will be connected to that account via the registrar's API. Using this kind of account has many different benefits - your customers will be able to purchase and to take care of new domains comfortably; the cost of a new registration will be lower when compared to what you'd have to spend as an end customer; also you can start reselling instantly. The registrar businesses which sell domain reseller accounts almost always need some money as a deposit.