Localization is one of the most challenging and important issues in wireless sensor networks (WSNs), especially if cost-effective approaches are demanded. In this paper, we present intensively discuss and analyze approaches relying on the received signal strength indicator (RSSI). The advantage of employing the RSSI values is that no extra hardware (e.g. ultrasonic or infra-red) is needed for network-centric localization. We studied different factors that affect the measured RSSI values. Finally, we evaluate two methods to estimate the distance; the first approach is based on statistical methods. For the second one, we use an artificial neural network to estimate the distance.