We rotate through these three bins, giving the kids one bin per day. They cannot play with the other bins until the appropriate day, so each bin stays organized and the contents new. We rotate them out and at the end of every day, all of the toys for that bin are safely stored away again, until it is their turn in the rotation.
Each day can have a theme, such as monster trucks and robots for him, and a tea party and dress up stuff for her, or you can spread out like toys across multiple days, though I think keeping them confined to a single day might make them more enjoyable.
The difference has been amazing. The kids are enjoying their toys again, because they can clearly see the choices they have, and for toys with pieces, all of the pieces are kept together. We make it a ritual each morning to pull out that day’s bin, and they get right to playing with those toys.
From now on, when we receive a new toy, we will choose a toy from one of the bins to donate or sell, so that the amount of toys in our home never again gets to unmanageable levels.