We report a new type of normalization procedure for modulation spectroscopy experiments in order to obtain the relative change in the reflectance (transmittance) spectrum &Dgr;R/R(&Dgr;T/T). Our new technique utilizes a servomechanism driven variable neutral density filter which keeps the dc component of the signal from the detector constant by varying the intensity of the light striking the sample. This method is particularly useful for photoreflectance measurements which can have background problems due to scattered pump light and/or photoluminescence. Advantages for other modulation spectroscopies, particularly in the region of the fundamental band gap of semiconductors, also will be discussed.