How can people sell domain names and hosting? Where do they get the domain names from? If I had my own server (or made my computer one), would I need to pay someone to host my website and to get a top level domain? Thanks!
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ICANN has a defined procedure to make accredited registrars (like godaddy). It’s a highly expensive task and only serious domain name businesses choose to follow that path. I don’t want to enter the specifics but i assume you’re not interested for this (i gave you some links below to check just for your information). Additional to the cost for the registrar you need to prepay in packs the domains you will sell from the registry operator. All these above are for official registrars and not for simple domain resellers.
For hosting is pretty simple. You rent a dedicated server from a datacenter, share the memory, bandwidth and hard disk resources to many clients and you easily sell shared webhosting packs. You can also buy VPS hosting plans and do the same (cheaper and managed from someone experienced about hosting)
Become a reseller for selling these services.
Check the resources for ‘Reseller Plans’ at Godaddy.com