My boys and I just enrolled in obedience classes at our local obedience club. First class I was ready to throw up- I have seen enough leash popping, prong collars and corrections to last me a life time. I was thinking to myself, how I am going to get through the classes without snapping at someone

anyway, yesterday class made me feel better- people have noticed how good our heeling is and are asking questions!!! Not sure I will convert anyone to stop jerking their leashes but at least they will see excellent results obtained by different methods.
I posted earlier link to SG clip. She is right, heeling comes naturally with her way of teaching, it is more way of life than performance in obedience ring.
Think of it in those terms- why dog will want to be near your hip? It is all about value. Ask your dog to come and see where dog naturally lands- I bet for most people it would be somewhere in front because when you give treats you give them in front of you. So your most valuable spot is in front. Change it to the side and you will see your dog much more readily heeling with you within 2 weeks

I was a big lurer in the past. Not anymore. Luring will produce behavior but it takes about 10,000 repetitions to really get it

I am not that patient and neither are my dogs...
I am not grand on clicker and use it only for behaviors I need to get exactness. Like right now I am teaching my boys to extend hind leg backwards. They already know to lift it but I need them to extend it. That is where I would use clicker because I see no other way to communicate extended lift.
When you walk and keep your leash in the right hand- I would advise to keep your treats in the Right hand. TRANSFER treat to left hand after you see behavior you want i.e. heeling. Touch treat to your hip or knee if your dog is small then give to the pup. If you have trouble, practice without dog first.
Do not name the behavior until you absolutely love what your dog is doing.
For those who rent DVD from Bowwoflix get "Heeling is just another trick" by Silvia Trkman. It is terrific training IMHO. This particular training is based on perch work and is helpful for many other areas.