diff --git a/README.md b/README.md
index 3c7bbf7a..2a92c107 100644
--- a/README.md
+++ b/README.md
@@ -72,7 +72,33 @@ $ ipfscluster-server -init
 
 The configuration will be placed in `~/.ipfs-cluster/server.json` by default.
 
-You can add the multiaddresses for the other members of the cluster in the `cluster_peers` variable.
+You can add the multiaddresses for the other members of the cluster in the `cluster_peers` variable. For example, here is a valid configuration for a cluster of 4 members:
+
+```json
+{
+    "id": "QmSGCzHkz8gC9fNndMtaCZdf9RFtwtbTEEsGo4zkVfcykD",
+    "private_key" : "<redacted>",
+    "cluster_peers" : [
+          "/ip4/192.168.1.2/tcp/9096/ipfs/QmcQ5XvrSQ4DouNkQyQtEoLczbMr6D9bSenGy6WQUCQUBt",
+          "/ip4/192.168.1.3/tcp/9096/ipfs/QmdFBMf9HMDH3eCWrc1U11YCPenC3Uvy9mZQ2BedTyKTDf",
+          "/ip4/192.168.1.4/tcp/9096/ipfs/QmYY1ggjoew5eFrvkenTR3F4uWqtkBkmgfJk8g9Qqcwy51",
+          "/ip4/192.168.1.5/tcp/9096/ipfs/QmSGCzHkz8gC9fNndMtaCZdf9RFtwtbTEEsGo4zkVfcykD"
+        ],
+    "cluster_addr": "0.0.0.0",
+    "cluster_port": 9096,
+    "consensus_data_folder": "/home/user/.ipfs-cluster/data",
+    "api_addr": "0.0.0.0",
+    "api_port": 9094,
+    "ipfs_api_addr": "0.0.0.0",
+    "ipfs_api_port": 9095,
+    "ipfs_addr": "127.0.0.1",
+    "ipfs_port": 5001
+}
+```
+
+The configuration file should probably be identical among all cluster members, except for the `id` and `private_key` fields. To facilitate configuration, `cluster_peers` includes its own address, but it does not have to.
+
+Once every cluster member has the configuration in place, you can run `ipfscluster-server` to start the cluster.
 
 
 ### `ipfscluster`