Create a rich text component
You create a rich text component when you want to reuse a section of HTML in multiple places in website, and you want to use a rich text editor to create and edit the HTML. A copyright notice is an example of the kind of HTML you could store in a rich text component.
Add a rich text element to an item
You add a rich text element to a site area or content item when you want a section of HTML to be used for a specific site area or content item and you want to use a rich text editor to create and edit the section of HTML.
Add a rich text element to a template
You add a rich text element to an authoring template when you want a section of HTML to be used by a set of content items that use the same authoring template and you want content authors to use a rich text editor to create and edit the HTML.