This may be stating the obvious, but the primary purpose of a magnetic starter is a safety one - to make sure the machine can't RESTART by itself if power is lost and then restored.
Functionally, the magnetic starter could go on either side of the rotary phase convertor. Traditionally, however, magnetic starters are also used as the primary on-off control for the device, so they're typically mounted at the point of use - i.e. at the specific machine.
Local code may require one location over the other, depending on whether you are in a commercial, industrial, or home situation. Since you're converting single phase to 3 phase, I'm guessing this is a home shop situation.
If you haven't already purchased the Rotary Convertor and maybe even if you have - look into one of the new electronic Variable Frequency Drive (VFD) phase convertors. They are digital, lightweight, have no moving parts, and offer additional features like variable speed, over/under speed capability, and remote control. They also eliminate the need for a magnetic starter, since they provide the same function at no additional charge.