Determine your character's ethnicity and appearance. For example, if your character is British, your readers will expect a stereotypically English name, so a non-English name like "Cho-Lin" would only work with a convincing backstory (see also, for example, the Desi family from Coronation Street). Remember that most readers will hear a name and instantly visualise a character based on that name, especially if that name hails from a particular culture. By a similar logic, bear in mind that some names are considered old-fashioned or New-Agey by today's readers. Does the name fit the time period your story is set in?
Determine your character's interests and characteristics, and decide what sounds will and will not work. If the character is quite strong-willed and stubborn, strong sounds like "k" and "p" will pick up well here. On the other hand, if your character is pretty and a bit shy, soft sounds like "f" and "s" work much better. You could also intentionally subvert this and write a character who gives a different impression than their name may suggest.
Think about name meanings. Search through baby name websites, looking for names that have a meaning that will go well with your character. You can go with physical appearance ("Bianca" for a blonde, "Bella" for someone pretty) or personality ("Lewis" means warrior and "Leo" means lion). It's best to choose a name with a subtle meaning instead of something really obvious.
Be cautious with famous names. Remember that certain names, such as "Adolf" or "Elvis", have certain overtones, and a character with a well-known name is unlikely to develop in their own way as you want them to. However, this can be made into a plot device or a running joke, if you want. Just be aware that people may well prejudge your character for this reason, and it is recommended that you use this technique sparingly, if at all.
Do you want your character to have a nickname? If so, you need to determine three things to your audience: (a) who calls the character by the nickname, (b) why they have developed this nickname (some, like Becky/Rebecca, need no explaining, others may need more) and (c) does the character like/accept this nickname? Is it a hated handle?
When you have decided on a shortlist of names, go to someone who doesn't know the character you have created. Read out each name to them in turn and ask what sort of person might have that name. If they come up with something completely different to your character, it may not fit.
Try naming your character after someone. It might be someone you love, someone who has influenced you or supported you, or the person that this character is based on. Be careful though — if you're naming your character after someone, check with them before it ever gets made public. They may not be happy with being associated with that character, especially if the character is portrayed unfavourably, and you may end up with a difficult court case. If they say they would rather not, accept this and change the name. This is different from using your own family members — your family, your business (although you should still use common courtesy, especially if these people are still alive). Garfield the cat, for example, was named for Jim Davis' grandfather. You could also use a variant of a name, use a first name as a surname (or vice versa) or use a masculine/feminine version of the name.
Don't choose a name that is very difficult to pronounce. You may think that Xzighlab is the perfect name for your character, but if the reader has to struggle through this name several times a page they will be put off.
Avoid characters with the same or similar name. If your character has a best friend, enemy, partner, sibling, etc. who they spend a lot of time with, it is best not to make their names too similar, or the readers may confuse the names. Examples include Rachel/Robert, Mary/Martin, Sophie/Sam etc. Even if they don't start with the same letter, but sound similar, there can be confusion, e.g. Jacob/George. If you are writing a book for the first time, start with flash fiction. There are many competitions where you can win money or get your work published in newspapers or anthologies. Some have prizes, where you can meet an agent and chat with them for half an hour. There are also very prestigious prizes for short stories, like the Bridport Prize and the Bath Short Story Award. If you win those, you can be recognized as a significant writer.
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