Bingo Card Creator is strictly superior to about half of their bingo products (can't do pictures), costs less at the quantities my teachers use, and has such an astoundingly better cost structure (what, you mean I don't leak 50% of the MSRP to the retailer?) that I'm essentially guaranteed to make money on sales.
After that, it is only a matter of marketing. (He says with a twinkle in his eye.)
Incidentally, I found a niche because someone came up to me and said "Oh bugger I would pay if this problem would go away." When is the last time you talked to someone who wasn't a techy but had money and problems?
This should be bold, highlighted and underscored - talk, talk, talk to non tech people with problems and money - problems are everywhere.
They are closer to being a "no ruckus" businesses than the others.
Both are valid strategies, but the latter has far more potential upside (With way more risk). That's probably why it gets more press.
Who wants to read about another software company that sells products and makes a few million?
Sure there is something you might call a 'type' that can be built on your latter. But it's not the only type.