How to create a live demo page for a theme?

How can you create a live demo page for a theme ?

something like a wordpress theme showcase, allowing customers to preview a specific theme live before they decide to purchase.

I have seen this on studiopress for example or any major theme seller.

Example.com – main website

Example.com/theme1/ – displays a demo of a certain theme

example.com/theme2/ – another theme, ETC

Can this be done with a plugin? Or do you have a better idea perhaps multisite?

Thank you

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