As said, there are some things you can get out of such a problem. (Like saying "ah you got me!" then using an alternate sleight.) If you think the trick would not be critically impaired because of the insight your spectator got into the method you can just plow on ahead. However, if they really did just figure it out, I don't try to wiggle my pride out. I just say, "You caught the sleight, nice. Most people don't get that one. Well, do you want to see one of my easier tricks? (Sure, they say.) Ok," and then you whip out BeLieve or some other heart stopper (Control, maybe?).
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Brad Christian does that in Ninja 1 he shows them how the pass is done, then he tells them about the one handed pass, and how much harder it is, but it is very simple so they are caught off guard and he still gets great reactions.