If you acquire a website hosting server with the intent to start your individual website hosting company and to resell plans to other people, you may also need to sell domains, to give your customers the opportunity to buy everything they need for their new site from one place. Being a licensed registrar involves thousands of dollars plus tons of documentation, so the most convenient solution is to register for a domain reseller account with an existing registrar company. Your reseller website will be connected to that account by using the registrar's API. To use this kind of account has a number of advantages - all your customers can acquire and to control new domains effortlessly; the price of a new registration will be lower compared to what you would need to spend as an end customer; and you will be able to start reselling immediately. The registrar companies which offer domain reseller accounts almost always want a certain amount of money as a deposit.