Recently, I overheard Terry debriefing a student. The student said, "Terry, you're a good instructor. I learned a lot today. Thanks." To which Terry replied, "No big deal. See ya next lesson."
Terry's student left, and I moseyed over. I told Terry I thought the student was a little disappointed in his response to the compliment.
Terry replied, "Well, I didn't want to come across as arrogant."
"That's not what you're doing when you accept a compliment properly," I said.
Terry asked how to do this.
I replied, "Look the person in the eye and, in a sincere manner, say something like, 'Thank you. I appreciate your kind words.'"
You're more likely to come across as cocky by shuffling your feet, dropping your head, and saying, "Ahh, it's nothin', really."
Offering a compliment is often the only way students have to show appreciation for their instructor's efforts. Don't deny them that chance.