Dont put it on too thick just enough to hold the gasket in place on the block or on the pump. An improper seating damaged seal or misaligned gasket can mean the water pump is not operating efficiently or worse is under undue stress from misalignment.
Water Pump Replacement
Install water pump gasket. It fills the gap between the engine and the water pump in your vehicle. Use the gasket and put the gasket maker on either side of it. The water pump gasket is a simple sheet comprised of gasket paper rubber silicone metal felt and fiberglass or plastic polymer. Then apply a dab of rtv sealant to the bolts and install the bolts finger tight to hold your new water pump in place. Old gaskets and seals should be replaced by new ones. Make sure the bolt holes align.
Double check that all the bolts are in place and in their. Position the new pump straight onto the mounting surface of the engine block. Do not force the pump on by striking the pump shaft. If you flush the cooling system with a water pump attached use the old water pump and not the new one to prevent impurities from contaminating the new pump. Should leave you in good stead. Dont apply sealant to an o ring or a dry seal.
When changing a water pump replace all old gaskets and seals with new ones. Only apply sealant if specifically recommended by the vehicle manufacturer. Carefully follow installation instructions. Install the new water pump. Put an even bead of sealant along the edge of the part but dont use too much sealant. Without the gasket the coolant flowing between the water pump and the engine block would undoubtedly leak out.
It will do the same job and work just as well.