I came on here to check the exact same thing! The punch is not created to be a traditional folder edge- it is inverted so the small tab folds over the paper. A strange design that I couldn't tell was going to pop out that way when it was in the package. After playing around with it a little there are 3 options ; 1- to cut it apart and glue it on the paper's edge, so it looks traditional. 2- To fold it as is, having the small tab adhere to the page edge and the larger tab stick "out" (this actually looks cute even though it's not what I had in mind) or 3- Fold it the long way- making a smaller chunky tab, that would have a longer edge actually over the paper. Sounds weird but in a junk journal or on an art journal page it looks cute and gives a smaller tab look.
Not exactly what I thought it would be, but I will use it anyway. The quality of the punch is great. I just may keep looking for another tab edge like I originally wanted.