anand wrote:
If I introduce someone, I will get one time commission i.e. $20 but if I re-sell linode I may get recurring charges.
Suppose I introduce my friend, he will signup and start his self hosted blog. After 3 month I will get $20.
But If I share my Linode, we can share the cost of Linode.
Hmm, I think the safe use of linode is to resell among closed friends. and should not start selling via internet, Until I get special Contract from Linode.

But I am serious!!
You're not likely to get a contract from Linode... Since they'd have nothing to gain.
As has been stated, there are plenty of people who resell linodes, and I'm fairly certain there are some on both sides, if you split those who link to Linode and sell services, and those who run their own nodes for customers.
The whole idea is to decide which part of the business you want to be in.
If you want to be a server reseller, go for it, just realize that you need to control what your customers are doing to ensure it remains within Linode's ToS, because you're the one who's ultimately liable.
On the other hand, if you want to sell sysadmin services, it would be better to point your clients at linode with your referral code, and then sell your services as their admin. That way they are responsible for following Linode's ToS, and you get paid for your admin work.
It all depends on what stage you want to insert yourself into.