Software Licensing - Activating in Local Environments
Software Licensing can work flawlessly in a local environment. If you choose to limit the number of license activations a customer may have, it's still possible to allow them to activate a license on their local development environment without impacting their activation count.
This allows your users to easily stay up to date in their testing and development environments while not getting free license activations.
In order for this to work two things need to happen.
Ignore Local Host URLs
In your WordPress admin, under Downloads → Settings → Extensions → Software Licensing look for a checkbox that says Ignore Local Host URLs. Make sure that's checked.
Make sure that your customers know they simply need to run your plugin on a URL that matches one of these:
No other steps need to be taken on the part of the store owner. If the customer is running on one of those URLs then it simply works.