Help please on multiplayer

Would someone please explain in a very easy way how i can make my own game in multiplayer , as i have followed the tutorial on you tube (
) i then start the game find my name etc in multiplayer put my password in after choosing car and it tells me cant get hold of server!!! well that server is me,also my mate clicks onto that server and it tells him the same i cant see what ive missed out , do i need to set other things up? surly it cant be this hard to get your own dedicated race up and going, anyone please help here

Thanks
 

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