The stuff you see squeezing out also is on the inside of the transmission, which is really bad news, when the RTV dries and rubberizes - the outside one wont care - the inside one is constantly being splashed with hot oil which will eventually break it off and it will get stuck in the strainer.
This is why the type and amount of sealant is critical. Just a very very small smidge of sealant oozing out is acceptable or paint it on (if your applicator allows) You are not supposed to pile it up.
I posted here a long time back when I repaired my camry engine, I used GM sealant in a caulking tube and laid a very thin bead. That engine is still bone dry till today and its already driven more than 100,000 kms after that repair job. And that car gets no care, its parked under a tree, driven 130 kms everyday - and washed once a month only. Oil gets changed with cheap 5w30 (discount wala) after 7000 kms.