Once it's out, you've got to figure out which way to orient it. Condoms get rolled down into position onto an erect penis, or, if it's not an erect penis, something that at least resembles an erect penis.
That means that you've got to apply the condom with the rolls on the outside, and the latex on the inside.
Think of it like the brim of a sombrero. Your head goes inside the hat and the brim curves up around the edges. The condom is the same way. The condom needs to be placed on the penis so that the roll of latex (brim) are facing up.
See photos below for additional info on which side is the "top" of the condom.