I sent the referral link to my boss and he bought the game and applied his CD key.

He now has a paid account linked to mine:

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Yet when I view my World of Warcraft account, it seems they didn't give me the free month. It appears I only have the free month that came with my Battlechest purchase.

I just created and bought my account this morning. Would this affect the free referral month in any way?

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We haven't seen each other or partied online in the game yet, do we need to do that first in order for me to receive the month?

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    I salute you, sir! I, for one, would be afraid of partying with my Boss in WoW. – Raven Dreamer Oct 12 '11 at 23:01

According to the Recruit-a-Friend FAQ:

How can I earn the free 30-day credit?

For each friend or family member you refer who upgrades to a retail version of World of Warcraft and purchases 30 days of game time via subscription or game card, you will receive a credit for 30 days of free game play.

When will I earn this 30-day credit?

Your account will receive 30 days of free game play after an upgraded recruit's payment finalizes for their purchased game time.
Note: In cases where a recruit sets up a subscription plan, their payment will not initiate until after any game time they currently have expires. This includes the free 30 days of game time that comes with the retail version of World of Warcraft.

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    So it sounds like the last paragraph applies to you, OP! – Raven Dreamer Oct 12 '11 at 23:22
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    A good way to get around this is to apply a prepaid time card. – user3658 Mar 5 '12 at 2:49

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