diff --git a/README.md b/README.md
index 425d77c5..de046470 100644
--- a/README.md
+++ b/README.md
@@ -114,6 +114,12 @@ $ rails g react:component my_subdirectory/HelloWorld greeting:string
 ```
 Note: Your component is added to `app/javascript/components/` by default.
 
+Note: If your component is in a subdirectory you will append the directory path to your erb component call.
+
+Example: 
+```
+<%= react_component("my_subdirectory/HelloWorld", { greeting: "Hello from react-rails." }) %>
+```
 
 ##### 7) [Render it in a Rails view](#view-helper):