It seems to be a paradox of sorts, you want to become really good at something so people will admire you for it, DHV. But if you are really good at something, they become intimidated and stop participating for fear of looking bad by comparison and you never really get to enjoy your talent.

Imagine a mPUA or a professional dancer asking you to "Show me what you've got." Now compare that to a newby who obviously has no skill asking you the same thing.

Obviously you're more inclined to show off for the new kid because you don't have to risk losing the respect of a master, and if you do perform for the master, you'll refrain from anything too outlandish for fear of failure. You won't try your very best just in case your best isn't good enough.

So when I'm on the dance floor, I'm fairly decent. And I really want to encourage the people around me to dance but they often chicken out.

I'm still too young to get into the club scene and haven't really had the opportunity for grinding yet, but to continue...

I heard that the key to being a skilled, sexy dancer, is to be able to make your partner, or anyone with you appear to be a sexy dancer too. If your a chick, and there is that one guy who makes you feel like a sex goddess when you dance with him, who are you going to want to get with?

TL;DR: How can you encourage others around you to be confident in their dancing (or anything for that matter) abilities and cut loose?