This is how I created a demo website:
1) Login to your control panel.
2) Select Web, then Web Sites.
3) You can create New Web Site if you want to or you can also create new virtual directory if you are parking the website under the existing website.
4) Copy the project or website folder into "wwwroot" folder under the existing website. (I prefer to use FileZilla to upload or download files)
6) Enter the Directory Name and select the Folder you just uploaded to the server, and click on "Create Directory".
I usually change the Default Documents to my home page.
8) Once you have done, click Update. Then the demo site is ready to run!