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How to add new FTP user with password on Unix server

Login to your workstation through console / SSH and enter into root mode by entering su into the console.
Create FTP group (if not yet created):

groupadd ftpusers

where ftpusers is the name of your group. Then add a user to the group and assign a home directory for this user:

useradd -g ftpusers developer -d /var/www/

where developer is the username of your new user and /var/www/ is the home directory for this user.
Then you have to assign a secure password to the user by entering:

passwd developer

after which, you will have to input desired password into the command line twice.
Thats it! New user with password is created for the group (which we created too) and the user can upload and modify files inside the assigned directory.

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