Host new Application under existing Site on Internet Information Services (IIS) on Godaddy server

Question

I am using Godaddy's dedicated Windows 10 server with IIS 10.0. I already have a website hosted on the same Godday server. Now I am trying to add new Application to the same domain. I followed following steps to create the application.

1. Open Internet Information Services
2. Browse to the desired website on the left side Sites menu.
3. Right click on the website and chose Add Application
4. I provided the Alias and the path to the directory where my new application files exists.
5. I use the same Application Pool as my parent site.
6. Press OK.

New application appears under the Site but when i browse to the new application in the internet explorer, I still see the original Web site.

Original Website URL: Http://www.example.com virtual directory name: TestDir

When I browse like this: Http://www.example.com/TestDir I still see the contents of the www.example.com.

What am I missing?

Do I need to go to my GoDaddy account and make some changes there or something else?