Licensing model for my application

Experts, currently I have been gathering ID's from the customer machine and doing some hashing and calling that the reg key. Then they send that to me and I provide the license key. When the application runs it checks everything and validates the license key. But how can I avoid this back and forth and simply provide a license key delivered with the application. How does the application know? How does it only work with that one installation of the application? I would also like the license key to provide information to the application like demo or full version.
BasicfarmerAsked:
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Éric MoreauSenior .Net ConsultantCommented:
That would implies that you are building a service that you are hosting on the web somewhere that will validate the requests when the application starts.

That would also implies that the client is always connected to your service through the Internet, otherwise the application wouldn't be able to get a valid license.

The client application needs to send the service a key to the service to see if it is valid or not. Will that key be tied to the computer (meaning that only that computer will be able to run the application) or will it be tied to the user (meaning that the same user could install the application on any computers)? This is a decision you need to take.
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BasicfarmerAuthor Commented:
Thanks for the great comments and direction.
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