When you get a website hosting server with the purpose to start your own website 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 opportunity to get everything they want for their new site from a single place. To become a licensed registrar involves thousands of dollars plus tons of documentation, so the easiest solution would be to register for a domain name reseller account with an existing registrar company. Your reseller website will be connected to that account through the registrar's API. To use such an account has many benefits - your customers are able to buy and to take care of new website names comfortably; the price of a new registration is lower compared to what you'd have to pay as an end customer; also you're able to start reselling immediately. The registrar companies which provide domain reseller accounts almost always want a certain amount of money as a deposit.