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SharePoint and Microsoft 365 External Sharing with Microsoft Accounts

I wrote a detailed post some time ago on how external sharing works with guests who do not have a Microsoft account. Today, I want to explain how external sharing works with external users with a Microsoft account.

Just to make sure we are on the same page when it comes to sharing externally, 3 types of external sharing can occur:

  1. Users with Microsoft 365 Accounts from their respective organizations
  2. Users with Microsoft Accounts (i.e., Outlook.com, Live.com, Hotmail.com, etc.)
  3. Users with Non-Microsoft Accounts (i.e., Gmail.com, Yahoo.com, etc.)

I explained how external sharing works with non-Microsoft accounts here. Today, I will explain the second option—sharing with Microsoft accounts.

What do I mean by Microsoft account?

By Microsoft Account, I mean the free domain accounts you might already have: Hotmail.com, Outlook.com, Live.com, Xbox.com. I also want to note that I am not talking about the Microsoft 365 account you might get from Work/Organization (this is something I will explain in a future post).

External Sharing with Microsoft Accounts

Scenario # 1: Inviting External Microsoft Account User to the Microsoft Team

Sharing a Team to Microsoft accounts is very similar to those of non-Microsoft accounts, except you do not receive the request to enter the temporary passcode.

  1. Once you invite an external user with one of the Microsoft accounts (i.e., outlook.com), the recipient receives an email like the one below.Microsoft Teams email saying Gregory added you as a guest, with Open Microsoft Teams button
  2. Once the user clicks on Open Microsoft Teams, he has to Accept legal terms.External Sharing with Microsoft Accounts
  3. Once accepted, the external user has instant access to a shared Microsoft TeamMicrosoft Teams as a guest user showing Project XYZ General channel and account menu
  4. Behind the scenes, the user is added to the User Directory.External Sharing with Microsoft Accounts

Scenario # 2: Inviting External Microsoft Account User to the SharePoint Site

Sharing a SharePoint Site to Microsoft accounts is very similar to those of non-Microsoft accounts, except you do not receive the request to enter the temporary passcode.

    1. To share a site, click on Gear Icon > Site Permissions, then Add members > Share site onlyExternal Sharing with Microsoft Accounts
    2. Type in the external user’s email addressExternal Sharing with Microsoft Accounts
    3. The recipient then receives an email that looks like thisExternal Sharing with Microsoft Accounts
    4. Once they click on a Site link from the email above, they have to enter their email address (Outlook.com address in our case)Sign-in page where an external user enters an Outlook.com email address with the Next button
    5. Then, accept some legal termsExternal Sharing with Microsoft Accounts
    6. After the legal terms are accepted, the recipient will have access to the site.SharePoint Client ABCD site opened by a guest, with account menu showing the guest username
    7. Just like with the Team external sharing, the user will end up in the User DirectoryMicrosoft 365 admin Active users list showing the external guest with an EXT username

Scenario # 3: Inviting External Microsoft Account User to a File or Folder

Sharing a file or folder externally to a Microsoft account like Outlook.com is no different than sharing a file or folder to a non-Microsoft account like gmail.com.

  1. Right-click on a file or folder and click Share. Then, enter the external user’s email address and click Invite.External Sharing with Microsoft Accounts
  2. The recipient then receives an email below and clicks Open.Email notification that a folder named Client Docs was shared, with the Open button
  3. On the next screen, the user will need to type in the email address. Click Next.Verify Your Identity page where the recipient enters their email address and clicks Next
  4. Microsoft will then need to send another email with a temporary passcodeMicrosoft notification email containing a temporary account verification code
  5. Then, the user will paste the verification code and click Verify.Enter Verification Code page with the code pasted in and the Verify button
  6. After that, the external user will have access to the shared folder!Shared Client Docs folder opened in the Client ABCD SharePoint site listing documents
  7. As with a non-Microsoft account, when files and folders are shared externally, those external recipients are not added to the User Directory!
Gregory Zelfond, the SharePoint Maven - profile photo

About Me

I’m Greg Zelfond, a U.S. based SharePoint consultant, and I provide affordable out-of-the-box SharePoint consulting, training, and configuration assistance to small and medium-sized businesses all over the world.

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