Protecting your secret bits is getting harder.
IMHO, your decision really depends on your target market. If you are targeting a business, just give them a code with a good license and maybe some kind of defect so that you can determine who gave your code if that happens. Businesses will only pay for your application in order to remain compatible; it is not worth legal obstacles. And if a person receives your application for free, this may be good, as they will try to convince their current and future employers to buy it.
If you target individual users and can do it as a web application (which you obviously use with PHP), do it as a hosted service and either sell your monthly subscription or allow free access and find another way to monetize it.
If you definitely need or need to distribute it among people for any reason, you can give it away for free and try to monetize settings, add-ons and other support functions.
This is a problem that has been discussed a lot, and a few hours of really really focused googling should reveal all current philosophies on this.
Hope this helps.
John MacIntyre
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