I have subscription of SharePoint Online and have created few private sites in it. I wanted to share one of the private site collection with the external users and keep on getting the following error message:
Sorry, you are not allowed to share this with external users.
However when I try to share existing sites (default sites) with external users, it gets shared without any problem.
Solution:
For the new site collections you have to enable following option:
- Go to the SharePoint admin center and select the Site Collection.
- Select Sharing from the tool bar.
- Change the sharing settings to Allow
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