So for free shaping, do you lure the first couple times for them to get the idea then let them figure it out, or do you just put something down, (in my case I am using a storage bin lid) and reward when they go and investigate what you put down at first, then with hold reward until they touch it and build from there etc? My dog has a reliable Bed, and Kennel command but I am trying to teach him to "Place" at a certain area next to front door when someone knocks or rings bell, however he thinks the training pad is a toy so when i put it down he goes to bite at it, suggestion on how to curb this?

I would manipulate your environment to make it work in your favor. In this case, I would not create an opportunity for the dog to practice chewing on his "place" object. Use something that the dog will not chew on. 

You could also change your position, so a lot of times when you are trying to get a dog to stand on something, you can perhaps change your position so the dog is more likely to follow you and walk over it. While this is isn't true free shaping, it isn't quite as obvious as luring the dog onto the item. The dog still has to work out the point at which he is being rewarded. Once you have done that a couple of times the dog will generally be easier to shape into getting onto the item.

I would agree with making the place something the dog can't readily chew on. I would also decrease my distance from the dog when they are told to place so you can control the behavior.