God loved the people of the world so much that he was wiling to sacrifice his only Son. His love was so great that it compelled him to send Jesus to die upon the cross in our place for our sin. The cross is where we see the fullness of God's love; a demonstration of his love. Out of love God gave his greatest gift. The second half of the verse is the benefit for those who believe: should not perish but have eternal life. Those who do not believe continue in their sin into eternal suffering, but for those who believe, God rescues from eternal death and gives them eternal life.
This is probably the most well known verse in the Bible and as a result it is often used out of context as a means to win converts. Have you really considered what John said before and after this verse. Have you really considered the conversation between Jesus and Nicodemus in verse 1 through 21? Do you realize that the demons believe but do not have eternal life and that Jesus explains, in Matthew 7:21-23, that many people say they believe but do not have eternal life. Many have used John 3:16 to convince people to believe and pray the sinners prayer only to deceive them into thinking they are saved. Please be careful how you use this verse. Salvation is a work of God in the heart; it is not from a convincing argument.
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