Convert Federated to Password Sync

I am having trouble converting my federated domain to PasswordSync.

here are the steps I am trying to take:

1. $cred = Get-Credential
   (This is my onmicrosoft global admin account, correct)?
   
2. Connect-MsolService –credential $cred
3. Set-MsolADFSContext –Computer <AD FS 2.0 server name>
   (this is my Federated on-premise Server)?
4. Convert-MSOLDomainToStandard –DomainName <federated domain name> -SkipUserConversion $false -PasswordFile c:\userpasswords.txt
   (<federated domain name> is this my on-premise domain or onmicrosoft domain)?
   (-PasswordFile c:\userpasswords.txt How do I know what to name this and it's path)?