“Luring” is when a treat is used to guide a dog into a certain position (such as sit, lay down, etc.) When done properly, the dog’s nose should stay “glued” to your hand with the treat in it. Some dogs are great at luring naturally. Others, especially shy dogs, sometimes need more practice to become proficient in luring. Teaching them to follow a treat will be very helpful in working on all obedience commands. 

Began by using a treat your dog finds tasty. Take the treat in your fist and hold it with a small portion stick out between your fingers. Now place the baited hand treat directly in front, almost on, the dog’s nose. Count to three or four. If he keeps his nose on your hand the entire time, praise him and give the treat. If at any point he pulls his nose away, remove your hand immediately and wait a few second before presenting your hand again.
The next step is to slowly move your hand away and have the dog follow it with his nose. If your dog falls away while you are moving your hand, you’re either going too fast or luring for too long before giving the treat. See if you can work your way up to luring your dog around in a figure eight pattern!