Parents of newborns can tell you that you'll be hit with an avalanche of baby clothes before and after baby is born. Sorting through all the outfits in various sizes and for different seasons is key to staying organized. We like the idea of these Baby Closet Dividers.
Each closet divider loops onto the closet rod and comes in a set that includes: Newborn, 3-6 months, 6-12 months, 12-18 months and 18-24 months. $10.99 available here.
If you've got a great solution for clothes storage, share it with us in our Now You See It, Now You Don't Contest.

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This is a clever idea, but my warning is to not rely entirely on the manufacturer's idea of sizes. When B was six months old, I pulled out the 6-12 month clothes and found that he was almost sized out of them already. Check the clothes against the kid regularly to see what they will fit into.
I want to second phoneill's advice. My three month old is too big for much of his 3 to 6 month clothes, but is still too small for some 3 month clothes from other manufacturers.
I have these dividers! But I agree that all clothing runs totally differently, so I do check very often to see what my 2-month old can wear now. He's currently in a variety of sizes and it can be confusing.
ha. my daughter's room doesn't even have a closet. cute, though.
(Also available at Babiesrus.com for $9.99.)
They also have very similar ones at the Container Store. I think they work great.