We are a domain name reseller of Direct Information Pvt. Ltd. We did consider option of becoming a registrar ourselves. Looking at the economics of the business, we found that we can serve our customers better if we resell domain names from an ICANN accredited registrar, following are some of the reasons.

A registrar needs to invest a lot of money in IT systems and infrastructure upfront and can not recover that money unless they take a fat margin on the domain names they sell. You can checkout yourself

A. Direct Information has a retail price of $12.99 on its domain names
C. Network solutions, another registrar, sells, domain names for $35.
D. All the reseller of these registrar get far lower rates and can offer all the feature that a registrar can offer its customers directly, nobody will become a reseller unless they did so.

As a reseller, we can offer you all the features with domain name as if you were buying from the registrar directly. It is same as buying from a wholesaler and selling at a retail shop. Customers get the same brand, same feature as they would have received from the company directly, but for far cheaper prices.

The crux of the story is that we can provide our customers better value if we resell the domain names from a full feature registrar such as Direct Information Pvt. Ltd (http://www.directi.com)