Step 1: What you're going to need
1. Magnetic business card
You can find these at any office supplies store or large retailer. I got mine at Walmart (50 magnets for $18). There are a bunch of different name brands and different counts inside the packages and such. I used the ones in the picture below.
2. Ink jet Printer
The magnetic business cards require an ink jet printer.
3. Software to put everything together
I used Photoshop and Microsoft Word for making my magnets, but you should be able to use any imaging software that can crop, rotate, and change the image size. Also You may be able to use a different program then Microsoft Word as long as it is able to open a template that corresponds with the magnetic business card sheet.
4. Decoupage glue, clear sealer or clear tape (optional)
You should be able to find this at any craft store or you can also make your own. I didn't use this on mine but I will explain more later.
Step 2: Time to start putting things together
Wherever you end up getting them you will most likely have to edit them a bit. You may have to crop them to get in the parts you want in the picture and to help cut out some background. You will also have to end up with a picture that has the dimensions of 3.5"x2".