When a project is overfunded backers sometimes wonder: what happens with all that “extra” money? If a creator has a funding goal of $5,000 and raises $25,000, what do they do with the $20,000 they didn’t ask for?
Most of the time what seems like “extra” money isn’t extra at all. Ten times the funding often means ten times the backers. More rewards have to be produced and distributed, and creators need that funding to do it (and sometimes some of their own money too).
Sometimes when a project is overfunded, it lets the creator put that money back into the project to create something better for the backers and themselves. More songs on an album, additional game elements, better materials, etc.
Creators may also choose to offer add-ons, allowing backers to select additional rewards, and ultimately get more out of the project. Any funds raised beyond the goal will help the creator to cover any manufacturing or shipping costs related to their add-ons.
In other cases, overfunding leads to better margins and the creator may even profit from the project. This often means that the creator can continue the project beyond Kickstarter — and backers are part of that story. In this series, a few creators share details on what changed when their projects were overfunded.