diff --git a/readme.md b/readme.md
index 524848f..5c58b8f 100644
--- a/readme.md
+++ b/readme.md
@@ -67,12 +67,15 @@ yo polymer:el my-element
 ### Seed
 Generates a reusable polymer element based on the [seed-element workflow](http://www.polymer-project.org/docs/start/reusableelements.html). **This should only be used if you're creating a standalone element repo that you intend to share with others via bower.** If you're just building a Polymer app, stick to the [El](#el) generator.
 
-To create a seed-element you'll first need to create a parent directory, then a sub directory to hold your seed-element. All bower dependencies will be installed into the parent directory. Please follow the [seed-element guide](http://www.polymer-project.org/docs/start/reusableelements.html) for more instructions.
+The seed-element generator will construct a new element _and_ its directory for
+you. Be aware: all bower dependencies will be installed as _siblings_ of the
+newly generated element. Make sure that you generate the seed element within a
+directory that is intended to contain multiple components!
 
 Example:
 ```bash
-mkdir -p components/x-foo && cd $_
-yo polymer:seed
+mkdir -p components && cd $_
+yo polymer:seed x-foo
 ```
 
 ### Gh
diff --git a/seed/index.js b/seed/index.js
index 12f00e6..dea45f1 100644
--- a/seed/index.js
+++ b/seed/index.js
@@ -7,6 +7,11 @@ module.exports = yeoman.generators.Base.extend({
   constructor: function () {
     yeoman.generators.Base.apply(this, arguments);
 
+    this.argument('element-name', {
+      desc: 'Tag name of the element and directory to generate.',
+      required: true,
+    });
+
     this.option('skip-install', {
       desc:     'Whether bower dependencies should be installed',
       defaults: false,
@@ -17,43 +22,39 @@ module.exports = yeoman.generators.Base.extend({
       defaults: false,
     });
   },
+  validate: function () {
+    this.elementName = this['element-name'];
+    if (this.elementName.indexOf('-') === -1) {
+      this.emit('error', new Error(
+        'Element name must contain a dash "-"\n' +
+        'ex: yo polymer:seed my-element'
+      ));
+    }
+
+    // Construct the element as a subdirectory.
+    this.destinationRoot(this.elementName);
+  },
   askFor: function () {
     var done = this.async();
 
     // Have Yeoman greet the user.
-    this.log(yosay('Out of the box I include the Polymer seed-element.'));
+    this.log(yosay('Out of the box I follow the seed-element pattern.'));
 
     var defaultName = path.basename(process.cwd());
     var prompts = [
       {
         name: 'ghUser',
         message: 'What is your GitHub username?'
-      },
-      {
-        name: 'elementName',
-        message: 'What is your element\'s name',
-        default: defaultName
       }
     ];
 
     this.prompt(prompts, function (props) {
       this.ghUser = props.ghUser;
-      this.elementName = props.elementName;
 
       done();
     }.bind(this));
   },
   seed: function () {
-    if (this.elementName.indexOf('-') === -1) {
-      console.error(
-        'The element name you provided: ' + this.elementName + ' ' +
-        'is invalid.'
-      );
-      console.error('Element name must contain a dash "-"');
-      console.error('ex: my-element');
-      return;
-    }
-
     this.copy('gitignore', '.gitignore');
     this.copy('gitattributes', '.gitattributes');
     this.copy('bowerrc', '.bowerrc');
diff --git a/test/seed-test.js b/test/seed-test.js
index 58caf08..3178f75 100644
--- a/test/seed-test.js
+++ b/test/seed-test.js
@@ -4,8 +4,10 @@ var path    = require('path');
 var helpers = require('yeoman-generator').test;
 
 describe('yo polymer:seed test', function () {
+  var testDir = path.join(__dirname, 'temp');
+
   before(function (done) {
-    helpers.testDirectory(path.join(__dirname, 'temp'), function (err) {
+    helpers.testDirectory(testDir, function (err) {
       if (err) {
         return done(err);
       }
@@ -15,7 +17,7 @@ describe('yo polymer:seed test', function () {
           helpers.createDummyGenerator(),
           'mocha:seed'
         ]
-      ]);
+      ], 'x-foo');
       this.polymer.options['skip-install'] = true;
 
       done();
@@ -29,19 +31,19 @@ describe('yo polymer:seed test', function () {
 
   it('creates expected files', function (done) {
     var expected = [
-      ['bower.json', /"name": "x-foo"/, /"main": "x-foo.html"/],
-      '.bowerrc',
-      '.editorconfig',
-      '.gitignore',
-      '.jshintrc',
-      'demo.html',
-      'index.html',
-      'README.md',
-      'x-foo.css',
-      'x-foo.html',
-      'test/index.html',
-      'test/tests.html',
-      'test/x-foo-basic.html',
+      ['x-foo/bower.json', /"name": "x-foo"/, /"main": "x-foo.html"/],
+      'x-foo/.bowerrc',
+      'x-foo/.editorconfig',
+      'x-foo/.gitignore',
+      'x-foo/.jshintrc',
+      'x-foo/demo.html',
+      'x-foo/index.html',
+      'x-foo/README.md',
+      'x-foo/x-foo.css',
+      'x-foo/x-foo.html',
+      'x-foo/test/index.html',
+      'x-foo/test/tests.html',
+      'x-foo/test/x-foo-basic.html',
     ];
 
     helpers.mockPrompt(this.polymer, {
@@ -50,6 +52,7 @@ describe('yo polymer:seed test', function () {
     });
 
     this.polymer.run({}, function () {
+      process.chdir(testDir);
       helpers.assertFiles(expected);
       done();
     });