diff --git a/examples/addsvc/cmd/addsvc/main.go b/examples/addsvc/cmd/addsvc/main.go
index 9da3118..2273a4c 100644
--- a/examples/addsvc/cmd/addsvc/main.go
+++ b/examples/addsvc/cmd/addsvc/main.go
@@ -47,7 +47,7 @@ func main() {
 	)
 	flag.Parse()
 
-	// Logging domain
+	// Logging domain.
 	var logger log.Logger
 	{
 		logger = log.NewLogfmtLogger(os.Stdout)
@@ -57,10 +57,10 @@ func main() {
 	logger.Log("msg", "hello")
 	defer logger.Log("msg", "goodbye")
 
-	// Metrics domain
+	// Metrics domain.
 	var ints, chars metrics.Counter
 	{
-		// Business level metrics
+		// Business level metrics.
 		ints = prometheus.NewCounter(stdprometheus.CounterOpts{
 			Namespace: "addsvc",
 			Name:      "integers_summed",
@@ -74,7 +74,7 @@ func main() {
 	}
 	var duration metrics.TimeHistogram
 	{
-		// Transport level metrics
+		// Transport level metrics.
 		duration = metrics.NewTimeHistogram(time.Nanosecond, prometheus.NewSummary(stdprometheus.SummaryOpts{
 			Namespace: "addsvc",
 			Name:      "request_duration_ns",
@@ -82,7 +82,7 @@ func main() {
 		}, []string{"method", "success"}))
 	}
 
-	// Tracing domain
+	// Tracing domain.
 	var tracer stdopentracing.Tracer
 	{
 		if *zipkinAddr != "" {
@@ -121,7 +121,7 @@ func main() {
 		}
 	}
 
-	// Business domain
+	// Business domain.
 	var service addsvc.Service
 	{
 		service = addsvc.NewBasicService()
@@ -129,7 +129,7 @@ func main() {
 		service = addsvc.ServiceInstrumentingMiddleware(ints, chars)(service)
 	}
 
-	// Endpoint domain
+	// Endpoint domain.
 	var sumEndpoint endpoint.Endpoint
 	{
 		sumDuration := duration.With(metrics.Field{Key: "method", Value: "Sum"})
@@ -155,18 +155,18 @@ func main() {
 		ConcatEndpoint: concatEndpoint,
 	}
 
-	// Mechanical domain
+	// Mechanical domain.
 	errc := make(chan error)
 	ctx := context.Background()
 
-	// Interrupt handler
+	// Interrupt handler.
 	go func() {
 		c := make(chan os.Signal, 1)
 		signal.Notify(c, syscall.SIGINT, syscall.SIGTERM)
 		errc <- fmt.Errorf("%s", <-c)
 	}()
 
-	// Debug listener
+	// Debug listener.
 	go func() {
 		logger := log.NewContext(logger).With("transport", "debug")
 
@@ -182,7 +182,7 @@ func main() {
 		errc <- http.ListenAndServe(*debugAddr, m)
 	}()
 
-	// HTTP transport
+	// HTTP transport.
 	go func() {
 		logger := log.NewContext(logger).With("transport", "HTTP")
 		h := addsvc.MakeHTTPHandler(ctx, endpoints, tracer, logger)
@@ -190,7 +190,7 @@ func main() {
 		errc <- http.ListenAndServe(*httpAddr, h)
 	}()
 
-	// gRPC transport
+	// gRPC transport.
 	go func() {
 		logger := log.NewContext(logger).With("transport", "gRPC")
 
@@ -208,7 +208,7 @@ func main() {
 		errc <- s.Serve(ln)
 	}()
 
-	// Thrift transport
+	// Thrift transport.
 	go func() {
 		logger := log.NewContext(logger).With("transport", "Thrift")
 
@@ -252,6 +252,6 @@ func main() {
 		).Serve()
 	}()
 
-	// Run
+	// Run!
 	logger.Log("exit", <-errc)
 }
diff --git a/examples/apigateway/main.go b/examples/apigateway/main.go
index b01b71f..01367ec 100644
--- a/examples/apigateway/main.go
+++ b/examples/apigateway/main.go
@@ -1,12 +1,12 @@
 package main
 
 import (
+	"bytes"
 	"encoding/json"
 	"flag"
 	"fmt"
 	"io"
 	"io/ioutil"
-	stdlog "log"
 	"net/http"
 	"net/url"
 	"os"
@@ -17,16 +17,18 @@ import (
 
 	"github.com/gorilla/mux"
 	"github.com/hashicorp/consul/api"
-	"github.com/opentracing/opentracing-go"
+	stdopentracing "github.com/opentracing/opentracing-go"
 	"golang.org/x/net/context"
 
 	"github.com/go-kit/kit/endpoint"
-	"github.com/go-kit/kit/examples/addsvc/client/grpc"
-	"github.com/go-kit/kit/examples/addsvc/server"
-	"github.com/go-kit/kit/loadbalancer"
-	"github.com/go-kit/kit/loadbalancer/consul"
+	"github.com/go-kit/kit/examples/addsvc"
+	addsvcgrpcclient "github.com/go-kit/kit/examples/addsvc/client/grpc"
 	"github.com/go-kit/kit/log"
+	"github.com/go-kit/kit/sd"
+	consulsd "github.com/go-kit/kit/sd/consul"
+	"github.com/go-kit/kit/sd/lb"
 	httptransport "github.com/go-kit/kit/transport/http"
+	"google.golang.org/grpc"
 )
 
 func main() {
@@ -38,153 +40,243 @@ func main() {
 	)
 	flag.Parse()
 
-	// Log domain
-	logger := log.NewLogfmtLogger(os.Stderr)
-	logger = log.NewContext(logger).With("ts", log.DefaultTimestampUTC).With("caller", log.DefaultCaller)
-	stdlog.SetFlags(0)                             // flags are handled by Go kit's logger
-	stdlog.SetOutput(log.NewStdlibAdapter(logger)) // redirect anything using stdlib log to us
+	// Logging domain.
+	var logger log.Logger
+	{
+		logger = log.NewLogfmtLogger(os.Stderr)
+		logger = log.NewContext(logger).With("ts", log.DefaultTimestampUTC)
+		logger = log.NewContext(logger).With("caller", log.DefaultCaller)
+	}
 
 	// Service discovery domain. In this example we use Consul.
-	consulConfig := api.DefaultConfig()
-	if len(*consulAddr) > 0 {
-		consulConfig.Address = *consulAddr
-	}
-	consulClient, err := api.NewClient(consulConfig)
-	if err != nil {
-		logger.Log("err", err)
-		os.Exit(1)
-	}
-	discoveryClient := consul.NewClient(consulClient)
-
-	// Context domain.
-	ctx := context.Background()
-
-	// Set up our routes.
-	//
-	// Each Consul service name maps to multiple instances of that service. We
-	// connect to each instance according to its pre-determined transport: in this
-	// case, we choose to access addsvc via its gRPC client, and stringsvc over
-	// plain transport/http (it has no client package).
-	//
-	// Each service instance implements multiple methods, and we want to map each
-	// method to a unique path on the API gateway. So, we define that path and its
-	// corresponding factory function, which takes an instance string and returns an
-	// endpoint.Endpoint for the specific method.
-	//
-	// Finally, we mount that path + endpoint handler into the router.
-	r := mux.NewRouter()
-	for consulName, methods := range map[string][]struct {
-		path    string
-		factory loadbalancer.Factory
-	}{
-		"addsvc": {
-			{path: "/api/addsvc/concat", factory: grpc.MakeConcatEndpointFactory(opentracing.GlobalTracer(), nil)},
-			{path: "/api/addsvc/sum", factory: grpc.MakeSumEndpointFactory(opentracing.GlobalTracer(), nil)},
-		},
-		"stringsvc": {
-			{path: "/api/stringsvc/uppercase", factory: httpFactory(ctx, "GET", "uppercase/")},
-			{path: "/api/stringsvc/concat", factory: httpFactory(ctx, "GET", "concat/")},
-		},
-	} {
-		for _, method := range methods {
-			publisher, err := consul.NewPublisher(discoveryClient, method.factory, logger, consulName)
-			if err != nil {
-				logger.Log("service", consulName, "path", method.path, "err", err)
-				continue
-			}
-			lb := loadbalancer.NewRoundRobin(publisher)
-			e := loadbalancer.Retry(*retryMax, *retryTimeout, lb)
-			h := makeHandler(ctx, e, logger)
-			r.HandleFunc(method.path, h)
+	var client consulsd.Client
+	{
+		consulConfig := api.DefaultConfig()
+		if len(*consulAddr) > 0 {
+			consulConfig.Address = *consulAddr
 		}
+		consulClient, err := api.NewClient(consulConfig)
+		if err != nil {
+			logger.Log("err", err)
+			os.Exit(1)
+		}
+		client = consulsd.NewClient(consulClient)
 	}
 
-	// Mechanical stuff.
+	// Transport domain.
+	tracer := stdopentracing.GlobalTracer() // no-op
+	ctx := context.Background()
+	r := mux.NewRouter()
+
+	// Now we begin installing the routes. Each route corresponds to a single
+	// method: sum, concat, uppercase, and count.
+
+	// addsvc routes.
+	{
+		// Each method gets constructed with a factory. Factories take an
+		// instance string, and return a specific endpoint. In the factory we
+		// dial the instance string we get from Consul, and then leverage an
+		// addsvc client package to construct a complete service. We can then
+		// leverage the addsvc.Make{Sum,Concat}Endpoint constructors to convert
+		// the complete service to specific endpoint.
+
+		var (
+			tags        = []string{}
+			passingOnly = true
+			endpoints   = addsvc.Endpoints{}
+		)
+		{
+			factory := addsvcFactory(addsvc.MakeSumEndpoint, tracer, logger)
+			subscriber := consulsd.NewSubscriber(client, factory, logger, "addsvc", tags, passingOnly)
+			balancer := lb.NewRoundRobin(subscriber)
+			retry := lb.Retry(*retryMax, *retryTimeout, balancer)
+			endpoints.SumEndpoint = retry
+		}
+		{
+			factory := addsvcFactory(addsvc.MakeConcatEndpoint, tracer, logger)
+			subscriber := consulsd.NewSubscriber(client, factory, logger, "addsvc", tags, passingOnly)
+			balancer := lb.NewRoundRobin(subscriber)
+			retry := lb.Retry(*retryMax, *retryTimeout, balancer)
+			endpoints.ConcatEndpoint = retry
+		}
+
+		// Here we leverage the fact that addsvc comes with a constructor for an
+		// HTTP handler, and just install it under a particular path prefix in
+		// our router.
+
+		r.PathPrefix("addsvc/").Handler(addsvc.MakeHTTPHandler(ctx, endpoints, tracer, logger))
+	}
+
+	// stringsvc routes.
+	{
+		// addsvc had lots of nice importable Go packages we could leverage.
+		// With stringsvc we are not so fortunate, it just has some endpoints
+		// that we assume will exist. So we have to write that logic here. This
+		// is by design, so you can see two totally different methods of
+		// proxying to a remote service.
+
+		var (
+			tags        = []string{}
+			passingOnly = true
+			uppercase   endpoint.Endpoint
+			count       endpoint.Endpoint
+		)
+		{
+			factory := stringsvcFactory(ctx, "GET", "/uppercase")
+			subscriber := consulsd.NewSubscriber(client, factory, logger, "stringsvc", tags, passingOnly)
+			balancer := lb.NewRoundRobin(subscriber)
+			retry := lb.Retry(*retryMax, *retryTimeout, balancer)
+			uppercase = retry
+		}
+		{
+			factory := stringsvcFactory(ctx, "GET", "/count")
+			subscriber := consulsd.NewSubscriber(client, factory, logger, "stringsvc", tags, passingOnly)
+			balancer := lb.NewRoundRobin(subscriber)
+			retry := lb.Retry(*retryMax, *retryTimeout, balancer)
+			count = retry
+		}
+
+		// We can use the transport/http.Server to act as our handler, all we
+		// have to do provide it with the encode and decode functions for our
+		// stringsvc methods.
+
+		r.Handle("/stringsvc/uppercase", httptransport.NewServer(ctx, uppercase, decodeUppercaseRequest, encodeJSONResponse))
+		r.Handle("/stringsvc/count", httptransport.NewServer(ctx, count, decodeCountRequest, encodeJSONResponse))
+	}
+
+	// Interrupt handler.
 	errc := make(chan error)
 	go func() {
-		errc <- interrupt()
+		c := make(chan os.Signal)
+		signal.Notify(c, syscall.SIGINT, syscall.SIGTERM)
+		errc <- fmt.Errorf("%s", <-c)
 	}()
+
+	// HTTP transport.
 	go func() {
-		logger.Log("transport", "http", "addr", *httpAddr)
+		logger.Log("transport", "HTTP", "addr", *httpAddr)
 		errc <- http.ListenAndServe(*httpAddr, r)
 	}()
-	logger.Log("err", <-errc)
+
+	// Run!
+	logger.Log("exit", <-errc)
 }
 
-func makeHandler(ctx context.Context, e endpoint.Endpoint, logger log.Logger) http.HandlerFunc {
-	return func(w http.ResponseWriter, r *http.Request) {
-		resp, err := e(ctx, r.Body)
-		if err != nil {
-			logger.Log("err", err)
-			http.Error(w, err.Error(), http.StatusInternalServerError)
-			return
-		}
-		b, ok := resp.([]byte)
-		if !ok {
-			logger.Log("err", "endpoint response is not of type []byte")
-			http.Error(w, err.Error(), http.StatusInternalServerError)
-			return
-		}
-		_, err = w.Write(b)
-		if err != nil {
-			logger.Log("err", err)
-			return
-		}
-	}
-}
-
-func makeSumEndpoint(svc server.AddService) endpoint.Endpoint {
-	return func(ctx context.Context, request interface{}) (interface{}, error) {
-		r := request.(io.Reader)
-		var req server.SumRequest
-		if err := json.NewDecoder(r).Decode(&req); err != nil {
-			return nil, err
-		}
-		v := svc.Sum(req.A, req.B)
-		return json.Marshal(v)
-	}
-}
-
-func makeConcatEndpoint(svc server.AddService) endpoint.Endpoint {
-	return func(ctx context.Context, request interface{}) (interface{}, error) {
-		r := request.(io.Reader)
-		var req server.ConcatRequest
-		if err := json.NewDecoder(r).Decode(&req); err != nil {
-			return nil, err
-		}
-		v := svc.Concat(req.A, req.B)
-		return json.Marshal(v)
-	}
-}
-
-func httpFactory(ctx context.Context, method, path string) loadbalancer.Factory {
+func addsvcFactory(makeEndpoint func(addsvc.Service) endpoint.Endpoint, tracer stdopentracing.Tracer, logger log.Logger) sd.Factory {
 	return func(instance string) (endpoint.Endpoint, io.Closer, error) {
-		var e endpoint.Endpoint
-		if !strings.HasPrefix(instance, "http") {
-			instance = "http://" + instance
-		}
-		u, err := url.Parse(instance)
+		// We could just as easily use the HTTP or Thrift client package to make
+		// the connection to addsvc. We've chosen gRPC arbitrarily. Note that
+		// the transport is an implementation detail: it doesn't leak out of
+		// this function. Nice!
+
+		conn, err := grpc.Dial(instance, grpc.WithInsecure())
 		if err != nil {
 			return nil, nil, err
 		}
-		u.Path = path
+		service := addsvcgrpcclient.New(conn, tracer, logger)
+		endpoint := makeEndpoint(service)
 
-		e = httptransport.NewClient(method, u, passEncode, passDecode).Endpoint()
-		return e, nil, nil
+		// Notice that the addsvc gRPC client converts the connection to a
+		// complete addsvc, and we just throw away everything except the method
+		// we're interested in. A smarter factory would mux multiple methods
+		// over the same connection. But that would require more work to manage
+		// the returned io.Closer, e.g. reference counting. Since this is for
+		// the purposes of demonstration, we'll just keep it simple.
+
+		return endpoint, conn, nil
 	}
 }
 
-func passEncode(_ context.Context, r *http.Request, request interface{}) error {
-	r.Body = request.(io.ReadCloser)
+func stringsvcFactory(ctx context.Context, method, path string) sd.Factory {
+	return func(instance string) (endpoint.Endpoint, io.Closer, error) {
+		if !strings.HasPrefix(instance, "http") {
+			instance = "http://" + instance
+		}
+		tgt, err := url.Parse(instance)
+		if err != nil {
+			return nil, nil, err
+		}
+		tgt.Path = path
+
+		// Since stringsvc doesn't have any kind of package we can import, or
+		// any formal spec, we are forced to just assert where the endpoints
+		// live, and write our own code to encode and decode requests and
+		// responses. Ideally, if you write the service, you will want to
+		// provide stronger guarantees to your clients.
+
+		var (
+			enc httptransport.EncodeRequestFunc
+			dec httptransport.DecodeResponseFunc
+		)
+		switch path {
+		case "/uppercase":
+			enc, dec = encodeJSONRequest, decodeUppercaseResponse
+		case "/count":
+			enc, dec = encodeJSONRequest, decodeCountResponse
+		default:
+			return nil, nil, fmt.Errorf("unknown stringsvc path %q", path)
+		}
+
+		return httptransport.NewClient(method, tgt, enc, dec).Endpoint(), nil, nil
+	}
+}
+
+func encodeJSONRequest(_ context.Context, req *http.Request, request interface{}) error {
+	// Both uppercase and count requests are encoded in the same way:
+	// simple JSON serialization to the request body.
+	var buf bytes.Buffer
+	if err := json.NewEncoder(&buf).Encode(request); err != nil {
+		return err
+	}
+	req.Body = ioutil.NopCloser(&buf)
 	return nil
 }
 
-func passDecode(_ context.Context, r *http.Response) (interface{}, error) {
-	return ioutil.ReadAll(r.Body)
+func encodeJSONResponse(_ context.Context, w http.ResponseWriter, response interface{}) error {
+	w.Header().Set("Content-Type", "application/json; charset=utf-8")
+	return json.NewEncoder(w).Encode(response)
 }
 
-func interrupt() error {
-	c := make(chan os.Signal)
-	signal.Notify(c, syscall.SIGINT, syscall.SIGTERM)
-	return fmt.Errorf("%s", <-c)
+// I've just copied these functions from stringsvc3/transport.go, inlining the
+// struct definitions.
+
+func decodeUppercaseResponse(ctx context.Context, resp *http.Response) (interface{}, error) {
+	var response struct {
+		V   string `json:"v"`
+		Err string `json:"err,omitempty"`
+	}
+	if err := json.NewDecoder(resp.Body).Decode(&response); err != nil {
+		return nil, err
+	}
+	return response, nil
+}
+
+func decodeCountResponse(ctx context.Context, resp *http.Response) (interface{}, error) {
+	var response struct {
+		V int `json:"v"`
+	}
+	if err := json.NewDecoder(resp.Body).Decode(&response); err != nil {
+		return nil, err
+	}
+	return response, nil
+}
+
+func decodeUppercaseRequest(ctx context.Context, req *http.Request) (interface{}, error) {
+	var request struct {
+		S string `json:"s"`
+	}
+	if err := json.NewDecoder(req.Body).Decode(&request); err != nil {
+		return nil, err
+	}
+	return request, nil
+}
+
+func decodeCountRequest(ctx context.Context, req *http.Request) (interface{}, error) {
+	var request struct {
+		S string `json:"s"`
+	}
+	if err := json.NewDecoder(req.Body).Decode(&request); err != nil {
+		return nil, err
+	}
+	return request, nil
 }
diff --git a/sd/consul/subscriber.go b/sd/consul/subscriber.go
index a2840dd..ee3ae34 100644
--- a/sd/consul/subscriber.go
+++ b/sd/consul/subscriber.go
@@ -32,7 +32,7 @@ var _ sd.Subscriber = &Subscriber{}
 // NewSubscriber returns a Consul subscriber which returns endpoints for the
 // requested service. It only returns instances for which all of the passed tags
 // are present.
-func NewSubscriber(client Client, factory sd.Factory, logger log.Logger, service string, tags []string, passingOnly bool) (*Subscriber, error) {
+func NewSubscriber(client Client, factory sd.Factory, logger log.Logger, service string, tags []string, passingOnly bool) *Subscriber {
 	s := &Subscriber{
 		cache:       cache.New(factory, logger),
 		client:      client,
@@ -52,7 +52,7 @@ func NewSubscriber(client Client, factory sd.Factory, logger log.Logger, service
 
 	s.cache.Update(instances)
 	go s.loop(index)
-	return s, nil
+	return s
 }
 
 // Endpoints implements the Subscriber interface.
diff --git a/sd/consul/subscriber_test.go b/sd/consul/subscriber_test.go
index 9be92bb..f581216 100644
--- a/sd/consul/subscriber_test.go
+++ b/sd/consul/subscriber_test.go
@@ -63,10 +63,7 @@ func TestSubscriber(t *testing.T) {
 		client = newTestClient(consulState)
 	)
 
-	s, err := NewSubscriber(client, testFactory, logger, "search", []string{"api"}, true)
-	if err != nil {
-		t.Fatal(err)
-	}
+	s := NewSubscriber(client, testFactory, logger, "search", []string{"api"}, true)
 	defer s.Stop()
 
 	endpoints, err := s.Endpoints()
@@ -85,10 +82,7 @@ func TestSubscriberNoService(t *testing.T) {
 		client = newTestClient(consulState)
 	)
 
-	s, err := NewSubscriber(client, testFactory, logger, "feed", []string{}, true)
-	if err != nil {
-		t.Fatal(err)
-	}
+	s := NewSubscriber(client, testFactory, logger, "feed", []string{}, true)
 	defer s.Stop()
 
 	endpoints, err := s.Endpoints()
@@ -107,10 +101,7 @@ func TestSubscriberWithTags(t *testing.T) {
 		client = newTestClient(consulState)
 	)
 
-	s, err := NewSubscriber(client, testFactory, logger, "search", []string{"api", "v2"}, true)
-	if err != nil {
-		t.Fatal(err)
-	}
+	s := NewSubscriber(client, testFactory, logger, "search", []string{"api", "v2"}, true)
 	defer s.Stop()
 
 	endpoints, err := s.Endpoints()
@@ -124,10 +115,7 @@ func TestSubscriberWithTags(t *testing.T) {
 }
 
 func TestSubscriberAddressOverride(t *testing.T) {
-	s, err := NewSubscriber(newTestClient(consulState), testFactory, log.NewNopLogger(), "search", []string{"db"}, true)
-	if err != nil {
-		t.Fatal(err)
-	}
+	s := NewSubscriber(newTestClient(consulState), testFactory, log.NewNopLogger(), "search", []string{"db"}, true)
 	defer s.Stop()
 
 	endpoints, err := s.Endpoints()
diff --git a/sd/factory.go b/sd/factory.go
index 0e3e196..af99817 100644
--- a/sd/factory.go
+++ b/sd/factory.go
@@ -9,7 +9,8 @@ import (
 // Factory is a function that converts an instance string (e.g. host:port) to a
 // specific endpoint. Instances that provide multiple endpoints require multiple
 // factories. A factory also returns an io.Closer that's invoked when the
-// instance goes away and needs to be cleaned up.
+// instance goes away and needs to be cleaned up. Factories may return nil
+// closers.
 //
 // Users are expected to provide their own factory functions that assume
 // specific transports, or can deduce transports by parsing the instance string.