Reprinted by with permission of Dr. Ian Dunbar and James & Kenneth Publishers

Say “Down,” and quickly lower the treat from the dog’s nose to a point in between the dog’s forepaws. Praise the dog when she lies down (“Goood girl!”) and offer the treat. It is easier to entice your dog to lie down if she is already sitting, since her hindquarters are already down.
To teach your dog to lie down when she is standing, hold the lure between finger and
thumb and lower the hand (palm downwards) to rest on the floor. As the dog worries at the lure, she will likely place the side of her muzzle on the floor (“Good girl!”) and then assume a play-bow with elbows and sternum on the ground (“Gooood girl!”). By gently moving the
lure towards the dog’s chest and between her forepaws, her rear end will collapse backwards and she will lie down (“GOOOD GIRL!!!”) Now step back and ask your puppy to come, sit, and lie down. An upward motion of your hand (held palm-upwards) has become the handsignal to sit, and a downward motion of your hand (held palm-downwards) has become the  handsignal to lie down.