diff --git a/README.md b/README.md
index f11f6b7..3563d80 100644
--- a/README.md
+++ b/README.md
@@ -15,10 +15,39 @@ To create the bot, just create a python file with the following:
 ```python
 import pinhook.bot
 
-bot = pinhook.bot.Bot(channels=['#foo', '#bar'], nickname='ph-bot', server='irc.freenode.net')
+bot = pinhook.bot.Bot(
+    channels=['#foo', '#bar'],
+    nickname='ph-bot',
+    server='irc.freenode.net'
+)
 bot.start()
 ```
 
 This will start a basic bot and look for plugins in the 'plugins' directory to add functionality.
 
-Optionally, you can change the `port` and add a list of operators with the `ops` argument.
+Optional arguments are:
+* `port`: choose a custom port to connect to the server (default: 6667)
+* `ops`: list of operators who can do things like make the bot join other channels or quit (default: empty list)
+* `plugin_dir`: directory where the bot should look for plugins (default: "plugins")
+
+### Creating plugins
+In your chosen plugins directory ("plugins" by default) make a python file with a function. You can use the `@pinhook.plugin.register` decorator to tell the bot the command to activate the function.
+
+The function will need to be structured as such:
+```python
+import pinhook.plugin
+
+@pinhook.plugin.register('!test')
+def test_plugin(**kwargs):
+    nick = kwargs['nick']
+    message = '{}: this is a test!'.format(nick)
+    return pinhook.plugin.message(message)
+```
+
+The function will need to accept `**kwargs` in order to gather information from the bot.
+
+Keyword arguments currently passed to the plugin:
+* `cmd`: the command that triggered the function
+* `nick`: the user who triggered the command
+* `arg`: all the trailing text after the command. This is what you will use to get optional information for the command
+