When you purchase a hosting server with the intention to start your very own hosting company and to resell plans to various people, you may also wish to sell domain names, in order to give your customers the opportunity to buy everything they need for their new Internet site from just a single place. Becoming an accredited registrar involves thousands of dollars along with a considerable amount of documentation, so the easiest solution is 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. Using this type of account has a lot of benefits - your customers are able to purchase and to take care of new domain names comfortably; the cost of a new registration is lower as compared to what you would need to spend as an end customer; and you'll be able to start reselling at once. The registrar businesses which provide domain reseller accounts almost always need a certain amount of money as a deposit.