Actually the notion that the kids can't be paid because they would be considered professional is an erroneous one because they are on a reality show not dancing professionally. And to take it further, a child could actually be paid to dance professionally in a show or commerical and still compete in most of the compeition circuits. There are kids who appeared in Billy Elliot who compete still.
Also, with regards to Holly...she just recently left her job at the 'prestigious Winchester Thurston Academy' where she was a Director I believe. Many say she was 'encouraged' to leave because of her affiliation with this train wreck of a show. Her staunch supporters of course just say it's because she wanted to spend more time with her family

Never heard of a high ranking professional working in a prestigious academic insitution leaving their position with only 3 months left in the school year because they 'wanted family time'. IDK Sure sounds fishy to me.
Also my understanding is that Reign is the name of the dance studio and ALDC the name she gives to her comp team.