I also have this question. I am a little reticent, though, because I'm concerned about scalability. In my case, I am writing the front end in typical database-backed fashion, but the backend is several custom C++ components. So while I want users, I'm not sure how much I want them on day one. Everything I read says, "get users, figure out your weaknesses, and scale as needed." That's reassuring. Nevertheless, the unknowns that we face can still be daunting.
Larger companies and people who have been around the block will often use a PR firm or will simply file a press release themselves. It costs about $1000, from what I understand.
I think from the standpoint of your average bootstrapper, guerilla tactics are in order. I plan on using Google Analytics. I haven't tried it yet, but I plan to. It will, for example, show hits based on geographic location. You can use that to target local advertising in the markets where you're getting some initial traction. I don't think there is really a set approach. When you're a guerilla, anything is possible.
If you wish to make a pre-launch buzz, try it in a controlled environment. A strategy I used was to aim for foreign startup blogs (mandarin, spanish, french, etc) instead of western ones. Their reviews gave me a leg up on the feedback I should anticipate from western bloggers.
Since the initial buzz I generated centered around foreign bloggers, I did not risk losing my reputation in front of the big name Web 2.0 startup bloggers. I took my startup to the west only after I was satisified with the feedback.
taking the pre-launch buzz approach is high risk. take powerset for example - they have generated so much buzz that their product had better be a google killer from day one or they're in trouble.
I was reading this article about "8 Simple Steps to Build Traffic For Your Internet Startup" @ http://www.scoreboard-media.com/internet-startup-traffic/ and was trying to understand, but some of the stuff I could not really follow. Like "What is defensible traffic". Also it says "Build links". But then how to build links? I do not mind spending money on having Press Release, but I do not know when is the right time to have one, and also who can assist me in writing a press-release. (My Written English sucks more than MC Hammer's accountant).
When you said, "end your beta announcement mail to, say, 10 people or 50 people". Should those be my friends and contacts or I can buy email list from somewhere. No Idea. I already sent email to my friends and contacts and so far 29 ppl have signed up to see when I release the product.
I don't think I would bother with a press release, unless you're launching something huge and you have the capital to back it up (e.g., a scalable system and people ready to go). I was just putting that out there. It sort of goes against the web model, anyway.
Having people give email addresses is one approach, but that realy only serves to give you a way to make a targeted announcement. Good, but not great. Having the site up and running is the crucial step. By the 80-20 rule, the last 20% of the features takes 80% of the time. Getting a product out the door is hard.
Once it's up, people will judge it pretty quickly, I think. They will look at it, judge it cool and come back, or judge it harshly and never come back again. Sometimes you get a second chance. If the product can be rapidly improved and you can maintain some buzz, then those lost users may see a reference to it and give it another try.
I guess I shall see when I launch it about what happens. Onista is HUGE application and I do not want to release it with any less features than originally planned. Just my UI Mockup is 200 pages. (just giving you idea on how big the application is). Onista being huge application, it has lot many features, so I believe that users will and will not like some features, but they will have lots of them to choose from.
Thanks again.