Can someone explain the difference between a non licensed user and a free collaborator?e.g.
Perhaps this article can shed some light on the subject: https://help.smartsheet.com/articles/520100-user-types
This one also helps:
https://help.smartsheet.com/articles/1155182-sharing-permission-levels
The big difference is when the Collaborator is an Admin -- look for the key words "licensed Admin only". Be aware this does not mean a "licensed Admin in your account". Just licensed in some account.
Craig
And for those who prefer a visual guide ...
Take a look at this help article:
Infographic: User Types and Sharing Permissions Explained
https://help.smartsheet.com/articles/2476646-infographic-user-types-sharing-permissions-decoded