I measure from the center of the rear axle, to the center of the seat bolt.
Lift up on the rear of bike to unload the shock, then let the bike settle down under it's own weight. Measure. Then sit on the bike in ridding/attack position, have someone hold you up, while someone else takes the measurement again. Should be between 90-95mm or 3-4 inches less then your first measurement. Adjust compression ring accordingly. This is called 'race sag'.
Now to check static sag, once again, unload the rear of the bike to is full extension, hold it there while somone measures, then let the bike settle down on its own weight, measure again, this should be 30-35mm or about an inch. If it is less than that, you need a stiffer spring, if it is more than 35mm, you need less spring rate (which is highly unlikely, unless you weigh 150 pnds).