Fold about 18" of 18 gauge wire in half (or 24 or 32 gauge. It needs to be pliable, but not too flimsy.) Insert one strand through a pony bead, then both wires through a wooden bead. Separate the wires and ... try to follow the diagram.
The hardest part is pulling everything tight. Do that as you go, to make the end easier. I don't have any beads handy to take a picture, but you hold the guy in one hand and use a pair of pliers to pull the wires tight before you go through the button and bead at the top, and to pull the remaining wire down to loop around the neck and out an arm bead.
If you have any questions, I'll do my best to answer them.
These make cute key fobs, as well.
Have a great Christmas!