It has been suggested that localization of signal-transduction proteins clo
se to the cell membrane causes an increase in their rate of encounter after
activation. We maintain that such an increase in the first-encounter rate
is too small to be responsible for truly enhanced signal transduction. Inst
ead, the function of membrane localization is to increase the number (or av
erage lifetime) of complexes between cognate signal transduction proteins a
nd hence increase the extent of activation of downstream processes. This is
achieved by concentrating the proteins in the small volume of the area jus
t below the plasma membrane. The signal-transduction chain is viewed simply
as operating at low default intensity because one of its components is pre
sent at a low concentration. The steady signalling level of the chain is en
hanced 1000-fold by increasing the concentration of that component. This oc
curs upon 'piggyback' binding to a membrane protein, such as the activated
receptor, initiating the signal-transduction chain. For the effect to occur
, the protein translocated to the membrane cannot be free but has to remain
organized by being piggyback bound to a receptor, membrane lipid(s) or sca
ffold. We discuss an important structural constraint imposed by this mechan
ism on signal transduction proteins that might also account for the presenc
e of adaptor proteins.