Optimum sag will lie somewhere between having too much pre load and too little. Sometimes found through personal preference, often set by the manufacturer.
So what you are saying is I have to know how much sag I need to set the preload, and I need to know how much preload I need to set the sag?
How much sag is too much?
How much sag is too little?
If it's bike specific then how do I measure for my bike?
I need some reference point I can actually use.