If you get a web hosting server with the intent to start your own web hosting company and to resell packages to other people, you may as well want to sell domains, to give your customers the option to obtain everything they want for their new site from a single place. To become a certified registrar involves thousands of dollars along with tons of documentation, so the most convenient solution is to sign up for a domain name reseller account with an existing registrar company. Your reseller site will be connected to that account by using the registrar's API. To use such an account has many different advantages - all your customers can buy and to take care of new domains without difficulty; the cost of a new registration is lower compared to what you would need to pay as an end customer; last but not least you're able to start reselling at once. The registrar businesses which supply domain reseller accounts almost always need a certain amount of money as a deposit.