Chris Anderson of Wired Magazine released a book called the Long Tail. The basic premise is that online distribution has created an atmosphere where niche products can scale to reach a larger audience. These products are now as profitable, if not more so, than traditional hit products for retailers.
If you agree with Anderson's premise, the time has never been better to offer products with a narrow appeal. As my friend Bob Baker says, "the riches are in the niches."
Do you have a niche product? If you have a mainstream product, how could you benefit from offering a niche version?