My daughter is a bit of a perfectionist and will refuse to practice something she struggles with too much. She had the building blocks of learning to read early on (knew what words were, knew the alphabet and their main sounds, knew "how" words can be sounded out) but it didn't catch on for years. For one thing, she prefers sight recognition over sounding out words, though now she is reading she has more patience to sound words out.
For dd, it was all about the reading material. As a family we read tons of things. She has always been a champion listener and we managed some pretty hefty books, many of which had more archaic phrasing, but she has always enjoyed stories. The book that got her to read (and write) was "Oceanarium" a slim little paperback with a picture of different habitats of the ocean and the creatures that live there. She was almost obsessive about this book that I picked up at the thrift store for 75 cents.
She loved for us to revisit old favorites from the library, first to "read" (recite, really) and then she actually was reading them. I could tell the difference because in a book she knew by heart she would stumble over a word she could have recited but instead was trying to recognize it or pronounce it.
The next and biggest motivator was a graphic novel. We had been reading a lot of Greek myths and folktales and "Perseus and Medusa" seemed a natural. She loved to read the bubbles while I read the narration. She also loves daily comics collections, like Garfield, Calvin and Hobbes and Baby Blues (so family-friendly until suddenly the parents are talking about "doing it". Great. :) Now she is reading through her horse and pony encyclopedia. I found some horse stories for beginning readers she seems to like, but it's been a long time coming, reading actual stories on her own.
At this early age, learning to read has more to do with readiness than practice, and the solution very often is simply to wait and encouraging reading by using the library regularly, reading as a family, and reading yourself. Then, the key for some kids is not to dumb things down-- pick books according to interest, not whether they are ready to read every word in it (and be ready to help out!) Others like to feel confidence at reading every single word. We actually were picking out baby books--at dd's behest-- with one word on every page. She was quite a bit younger, and of course she chose to pick them out, otherwise I don't think it would work.
I generally just read the word for her when I am asked to. Sometimes if we are reading together, I say "read while I say the word" and I run my finger along the word. This has to be done only occasionally and with *great discretion* --she hates the finger running under the word thing normally, and can become too pedantic and off-putting. Odd pronunciations sometimes send me into word-nerd mode, and the girls listen to what I know about the stories behind the history of the word. (I am not recommending this. It is part of my personality. They're pretty patient, even interested..... but I get lucky, I think.)