diff --git a/README.md b/README.md
index 300501d..93f543a 100644
--- a/README.md
+++ b/README.md
@@ -213,3 +213,15 @@ cd /usr/bin/
 python
 from backupbot import *
 ```
+
+### Versioning
+
+- App version: changes to `backup.py` (build a new image)
+- Co-op Cloud package version: changes to recipe.
+
+>For example, starting with 1.0.0+2.0.0:
+>    "patch" change to recipe: 1.0.1+2.0.0
+>    "patch" change to backup.py: increment both, so 1.1.0+2.0.1
+>           because bumping the image version would result in a minor recipe release
+
+https://git.coopcloud.tech/coop-cloud/backup-bot-two/issues/4