What is the difference between sharing a folder with someone on iCloud versus purchasing 200 MB and sharing an iCloud drive? Since I do not have a lot that I need to share, I don't see why I would wish to purchase the extra disk space if I don't need it. Would someone please explain the difference to me?
Paul
MacBook Pro 13″, macOS 11.5
If you have a family and other family members need iCloud storage space for their own photos, backups, etc, then rather than each family member buying their own storage plan (for 50GB for example), it can be cheaper to buy one 200GB plan and share the storage plan. Each family member's storage is still under their own Apple ID and is private. That is different than sharing a folder -- with that you are sharing access to the data in a folder; but with sharing iCloud storage you are sharing access to storage space, not access to data.
Also see: Share an iCloud storage plan with your family - Apple Support
If you have a family and other family members need iCloud storage space for their own photos, backups, etc, then rather than each family member buying their own storage plan (for 50GB for example), it can be cheaper to buy one 200GB plan and share the storage plan. Each family member's storage is still under their own Apple ID and is private. That is different than sharing a folder -- with that you are sharing access to the data in a folder; but with sharing iCloud storage you are sharing access to storage space, not access to data.
Also see: Share an iCloud storage plan with your family - Apple Support
Sharing iCloud folder vs drive
