I have read about this method in dog books (minus the potty in the crate part). Books from probably the 90's. I used to read read read about dogs when I was a little girl, but I think this method is a little out-dated.
First start out with a clean environment for your dog. Make sure to wipe up any mess they make inside the house with an enzyme cleaner specifically made for pets. I know of one called Nature's Miracle. You can buy it at petco, or there are other brands at other stores too.
Second, to make things easier for you, make sure you have a structured schedule for your puppy. Feed your puppy and watch them closely after their meal. They will start to sniff, then you grab them and take them out immediately. Just start by saying "go potty, go potty" and when they go PRAISE them and give treats treats treats! They also tend to go after heavy playing.
If you take them out after their meal, and they don't go, put them into their crate for 15 minutes then try again. You NEVER want them to go in their crate. Their crate is their clean, safe place and if you let them sit in their mess or they won't mind it after a while and mess all over the house. All areas of the house= clean places. Outside=potty places
If they accidently go in the house, grab them even if they are in the middle of going and say "no, potty outside!" and take them out. It took my dog until 4 months to be fully trained and able to be trusted for the most part. It takes lots of time, and also when they get excited, don't be surprised if they pee a little because their bladder muscles are really weak when they're little and they sometimes can't help it.
They will go through a few phases- first they just don't get it at all, second they will still go in the house but know they did something naughty, third they will eventually just get it and go outside only. You will slowly see progress.
Jackson- DDR/WGSL 5/5/10
Tinah vom Gildaf- DDR 4/29/13