diff --git a/README.md b/README.md
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@@ -46,6 +46,59 @@ and are automatically released (multiple times a day, when needed) by
 Type checkers should be able to use these stub packages when installed. For more
 details, see the documentation for your type checker.
 
+### Package versioning for third-party stubs
+
+Version numbers of third-party stub packages consist of at least four parts.
+All parts of the stub version, except for the last part, correspond to the
+version of the runtime package being stubbed. For example, if the `types-foo`
+package has version `1.2.0.7`, this guarantees that the `types-foo` package
+contains stubs targeted against `foo==1.2.*` and tested against the latest
+version of `foo` matching that specifier. In this example, the final element
+of the version (7) indicates that this is the eighth revision of the stubs for
+`foo==1.2.*`. If an update to the stubs were pushed (but the stubs were still
+aiming to provide annotations for `foo==1.2.*`), then the version of
+`types-foo` would increment to `1.2.0.8`.
+
+At typeshed, we try to keep breaking changes to a minimum. However, due to the
+nature of stubs, any version bump can introduce changes that might make your
+code fail to type check.
+
+There are several strategies available for specifying the version of a stubs
+package you're using, each with its own tradeoffs:
+
+1. Use the same bounds that you use for the package being stubbed. For example,
+   if you use `requests>=2.30.0,<2.32`, you can use
+   `types-requests>=2.30.0,<2.32`. This ensures that the stubs are compatible
+   with the package you are using, but it carries a small risk of breaking
+   type checking due to changes in the stubs.
+
+   Another risk of this strategy is that stubs often lag behind
+   the package being stubbed. You might want to force the package being stubbed
+   to a certain minimum version because it fixes a critical bug, but if
+   correspondingly updated stubs have not been released, your type
+   checking results may not be fully accurate.
+2. Pin the stubs to a known good version and update the pin from time to time
+   (either manually, or using a tool such as dependabot or renovate).
+
+   For example, if you use `types-requests==2.31.0.1`, you can have confidence
+   that upgrading dependencies will not break type checking. However, you will
+   miss out on improvements in the stubs that could potentially improve type
+   checking until you update the pin. This strategy also has the risk that the
+   stubs you are using might become incompatible with the package being stubbed.
+3. Don't pin the stubs. This is the option that demands the least work from
+   you when it comes to updating version pins, and has the advantage that you
+   will automatically benefit from improved stubs whenever a new version of the
+   stubs package is released. However, it carries the risk that the stubs
+   become incompatible with the package being stubbed.
+
+   For example, if a new major version of the package is released, there's a
+   chance the stubs might be updated to reflect the new version of the runtime
+   package before you update the package being stubbed.
+
+You can also switch between the different strategies as needed. For example,
+you could default to strategy (1), but fall back to strategy (2) when
+a problem arises that can't easily be fixed.
+
 ### The `_typeshed` package
 
 typeshed includes a package `_typeshed` as part of the standard library.