This is one way I differentiate in my classroom. Each student in my class uses this program. They are all assigned reading activities that are on their independent reading level. As they students read the stories and take the quizzes, they are able to move up to the next reading level. This program allows the students to practice their readind skills and continue grow in their reading ability at their own pace.
Another way I differentiate in my classroom is through guided reading groups. At the first of the school year I test each student on their sight words, I take the results from DIBELS and group students from their. As I work with the students and see they need to move to a different group based on their reading skills, I move them where they best fit. I have a classroom leveled library which I use also, I send home books for the students to read based on their reading level. They return these books after they have read them. Another thing I use is activities that are leveled as well and the students have a reading binder that they keep those activities in.