In case this helps, I was able to convert all of my Phone contacts into Google contacts in a matter of minutes...
1. Use the Export feature to create a .vcf file on your SD card
2. Email the .vcf file from your phone to your Gmail.
3. Download the file from your gmail to your PC.
4. Turn off contact syncing on your phone then delete all Phone contacts (Settings -> Apps -> Manage apps -> Contact Storage -> Clear data)
5. Import the .vcf file into your Google contacts.
6. Turn contact syncing back on.
Everything will be put back on your phone but as Google contacts.