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there does have to be conversion, but it's quite easy to do it the ghetto way. You can also pay extra for a song to be turned into a ringtone but that's the most retarded thing I've seen ever.
first of all, it has to be no longer than 27 seconds or Itunes doesn't recognize it as a ringtone, so you have to edit your mp3 to make it short and obviously to be the part of the song you want as a ringtone. You can edit it in any daw, but there's an easy way for dummies, like this:
1- in Itunes, rightclick the song you want to turn into a ringtone, and select "get info".
2- in the options tab, change the start time and stop time of the song to your liking (where in the song you want it to start and end), making sure it's no longer than 27 seconds.
3- hit OK.
4- Now right click the song again and hit "Crate AAC Version"
5- After the new version is created take back the start time and stop time of the mp3 to normal, or you'll get frustrated when you play that song in your Iphone.
6- right click the new aac version and click "open in windows explorer"
7- change the name of the file, change the extension to .m4r
8- now drag and drop this .m4r file to Itunes and voila, new ringtone
There isn't a normal appstore app to convert an mp3 to a ringtone cause you're supposed to pay for it but that's so ridiculous I don't do it. But there is a pretty cool jailbroken that can do that very easily, don't remember the name and don't have it installed right now
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