The pin orientation is correct. You want leverage to "push the door into the frame" as you lock the handle over center.
From the MM:
1. Adjust cabin door linkage to satisfy requirements listed below.
A. Latching pin must contact striker plate hole on door frame, the full circumference of pin, when mecha- nism is in full latched position.
B. Latching pin must clear striker plate when open- ing or closing door with latching mechanism in full open position.
C. As lower link (1) and bellcrank arm (2), (Fig. 52-2) travel over center, the spring (3), is to be com- pressed to 1.000 +/-.030.
NOTE
Washers may be added between spring and link or 310294-501 housing assembly (4) to comply with items B and C, (Figure 52-2).
D. The lower link (1) and bellcrank arm (2), in full locked position, should be overcenter a minimum of .3 inches, (Figure 52-2).