If you acquire a website hosting server with the purpose to start your own website hosting company and to resell packages to various people, you may as well want to sell domain names, in order to give your customers the option to obtain everything they want for their new site from just a single place. To be a licensed registrar involves thousands of dollars as well as tons of documentation, so the easiest solution is to register for a domain reseller account with a current registrar company. Your reseller site will be linked to that account through the registrar's API. To use such an account has a number of pros - your customers are able to get and to control new domains with ease; the price of a new registration is lower compared to what you would need to pay as an end customer; last but not least you will be able to start reselling instantly. The registrar businesses that supply domain reseller accounts in most cases want some money as a deposit.