1- Put the bike on a stand and the wheel off the ground.
Make a mark on the fender or side panel that is close to vertical. Be sure the wheels are the same distance off the ground (many bikes will tilt forward when put on a center stand.)
ERROR #2: Not measuring vertically. If the tape measure is angled the Sag number will be decreased dramatically (measures too low).
Sag Master - Put the pin on the back of the Sag Master into the hollow rear axle. Extend the tape and lock it in so the end aligns with the mark on the plastic.
Note: Do not force the Sag Master body into any particular position. Allow it to go to the top of the hollow axle and let the pull on the tape to orient the body.
Tape Measure - Measure the distance from the rear axle to the vertical point.
This is L1 for a Tape Measure. (It is the end of the tape, in other words "zero", for a Sag Master.)
If you don't have a Sag Master, at least use a metric tape measure. Much easier.